The Chinese government has set targets to increase the number of mergers in nine industrial sectors to reshuffle its industrial structure and enhance big enterprises’ global competitiveness.
The Ministry of Industry and Information Technology (MIIT), along with 11 other authorities, said in a guideline on January 22 that the government is encouraging mergers in the steel, cement, automotive, shipbuilding, aluminium, rare earth, electronic information, pharmacy and agricultural sectors.
The country will work to cut a large number of steel producing enterprises and phase out outdated capacity through mergers, in a bid to raise the concentration ratio of the top ten steel producers to around 60% by 2015.
China will also slash the number of firms in the rare earth business through mergers and concentrate production capacity in the sector into a number of large enterprises, the guideline says.
Source: China Metals e-mail email@example.com