China Boasteel and Wuhan Iron and Steel Corp. pronounce trade suspension and start the consolidation yesterday (Jun. 28th). Last year (2015), the total output of Boasteel was 35 million tons, China’s 2nd and World’s 5th; the total output of Wuhan was 26 million tons, China’s 6th and World’s 9th.

After they consolidate, they will have the advantage of economies of scale. Their annual output can meet up to 61 million tons and they will become the No. 1 steel company in China and No. 2 in the world.

China steel executive VP Shyi-Chin Wang treated this integration positively and said “It’s positive development to merge and reorganize of excessive capacity.” The important steel countries like U.S. and Japan had the industry integration before.