Steel companies follow global trend

SHANGHAI: A recent domestic steel industry merger is a sign of things to come, as the nation's mills try to counter pressure from global steelmakers, an industry analyst said yesterday.

Wuhan Iron and Steel, the nation's fourth largest iron and steel producer, on Wednesday said it will launch a joint-stock venture with Guangxi Liuzhou Iron and Steel.

Wuhan Steel will inject 35.2 billion yuan into the new venture, accounting for 80 percent of its overall registered capital, while Liuzhou Steel will take the remaining 20 percent share, bringing in its current net assets.