Shaanxi's provincial government is responding to Beijing's calls for consolidation of the fragmented steel industry by merging its three mills into one company.
Shaanxi Iron & Steel Group will control the operations of Shaanxi Longmen Iron & Steel, Shaanxi Lueyang Iron & Steel and Shaanxi Hanzhong Iron & Steel Group, according to a statement on the Shaanxi Provincial National Development and Reform Commission's website.
An official from the provincial NDRC's industry department said the new group would maintain the current annual capacity of about 6 million tonnes.
'No timetable has been set for the restructuring, but we hope to do it as soon as possible,' the official said.
One of the aims of the restructuring was to upgrade the province's steel-making technology and get rid of outmoded practices. At present, there was no plan for capacity expansion, he said.
The move is in line with similar mergers in Hebei and Shandong provinces last year that were part of the State Council's plan to speed up consolidation of the industry.