Steel giant unveiled in China after major merger

NANNING, Sept. 3 -- China has launched a steel-making project in the southern Guangxi Zhuang Autonomous Region that will have an annual production capacity of 30 million tons, with the formal establishment of the Guangxi Iron and Steel Group here on Wednesday.

The group is a joint venture between Wuhan Iron and Steel Group, China's fourth largest steel maker based in Hubei Province, and the Guangxi regional administration of state-owned assets.

Wuhan Iron and Steel Group is holding a 80 percent stake, in the form of cash input, in the new group.

The Guangxi regional administration of state-owned assets shall hold a 20 percent stake, in the form of all the net assets of its Liuzhou Iron and Steel Group.

The new group expects to begin building its plant in December in Fangchenggang, a major port in Guangxi.