Baosteel, Wuhan Steel announce restructuring plans

China’s Baosteel Group and Wuhan Iron and Steel Group, two of the country’s largest steelmakers, are together planning to restructure, their listed units said in separate stock exchange filings on Sunday, Reuters reports. Baosteel Group is China’s second-largest steelmaker, and Wuhan Iron and Steel Group is the country’s fourth-largest. The companies did not specify what the restructuring would entail. Beijing has said that mergers would be a key way to consolidate the steel sector, aiming to cut overcapacity and increase the proportion of output from China’s ten biggest mills. China has vowed to tackle price-sapping supply gluts in major industrial sectors and said in February it would close 100 million-150 million tonnes of steel capacity in the coming three to five years.