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The fifth wave of global steel restructuring
Release time:
2021-09-15
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The history of the development of the global steel industry is a history of competition where steel production capacity concentrates in large conglomerates. Some large steel companies, especially multinational corporations, spare no effort in forming cross-border alliances to pursue greater economies of scale, and through mergers and reorganizations, they create larger steel giants. ArcelorMittal is an example of how this has led to the formation of a global steel powerhouse.
The history of the development of the global steel industry is a history of competition in which steel production capacity concentrates in large group companies. Some large steel companies, especially multinational corporations, spare no effort in forming multinational alliances to pursue greater economies of scale, and through mergers and reorganizations, they create larger steel giants, with ArcelorMittal becoming a global steel powerhouse in this way.
For more than 100 years, although the global steel industry has experienced several major economic crises, each crisis has allowed the steel industry to be reborn and deepen its development. Two factors play a decisive role: first, technological upgrades have driven industrial upgrades, and second, mergers and reorganizations have increased industry concentration.
For more than 100 years, the global steel industry has undergone five large-scale mergers and reorganizations, each of which has concentrated production capacity in large enterprises and formed larger steel companies.
The first large-scale wave of mergers and reorganizations occurred in the early 20th century in the United States, which also produced the world's first steel mill—U.S. Steel.
The second occurred in the 1970s in Japan, where Yawata Iron & Steel and Fuji Iron & Steel merged to form Nippon Steel, which has since maintained its position as the number one in Japan and the second globally.
The third wave occurred in the late 1990s and early 2000s in Europe, creating the then-largest steel group in the world, Arcelor.
The fourth wave is the merger and reorganization led by Mittal across North America, Europe, Asia, South America, and Africa since this century. By 2005, Mittal had ranked first globally, and in 2006, it reorganized the second-largest Arcelor, becoming a global steel giant in one fell swoop.
The above four large-scale reorganizations have continuously increased the concentration of the global steel industry and have optimized and upgraded the steel industry structures in countries and regions such as the United States, Japan, South Korea, and Europe, revitalizing them.
In China, the original Baosteel Group and the original Wuhan Iron and Steel Group merged to form Baowu Steel Group, Hebei Iron and Steel Group acquired Serbian steel mills, and the rise of steel groups such as Shagang, Jianlong Group, and Delong has led to a wave of mergers and reorganizations, indicating that the fifth wave of steel mergers in the world is forming in China!
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