Basic Company Profile
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Name: Magang (Group) Holding Co., Ltd. (Masteel).
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Founded: 1953, originally as Ma’anshan Iron Mining Plant.
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Headquarters: Ma’anshan, Anhui Province, China.
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Ownership / Parent: Since mid-2019, it is under the control of China Baowu Steel Group. Baowu acquired ~51% of Magang Group, making it the controlling shareholder. The rest remains with Anhui Province’s State-owned Assets Supervision and Administration Commission (Anhui SASAC).
Key Operations & Products
A unique product catalog of “plate & strip, section steel, wire & rod and train wheel& tyre” has been formed in Masteel. It is widely used in aviation, railway, ocean, automobile, home appliance, shipbuilding, construction, machinery manufacturing and other fields as well as national key projects, and has broad market prospects.
- Train Wheels: Ma Steel is China’s largest train wheel production base, with strong technical capabilities. Its products are used in high-speed trains, EMUs, subways, and conventional railway freight cars, and are its most representative “signature products.”
- H-Beams: One of China’s largest H-Beam production bases, its products are widely used in construction, bridges, and steel structures.
- Plate: Its products include hot- and cold-rolled sheet, galvanized sheet, color-coated sheet, and electrical steel, and are used in the automotive, home appliance, and machinery manufacturing industries. Ma Steel holds a high market share for home appliance sheet.
- Hot-rolled sheet is widely used in the construction, automotive, bridge, machinery, and oil transportation industries.
- Cold-rolled sheet is used in high-end light industrial applications, home appliances, and mid- to high-end automotive parts.
- Galvanized sheet is targeted at automotive, home appliance, high-end construction, and packaging and container applications.
- Color-coated sheet can be used in interior and exterior building applications, home appliances, and steel windows.
- Long Products: Wire rod, rebar, and other products.
- Specialty Products: In addition to wheels and H-Beams, Ma Steel also produces high-speed wire rod and special steel.
Capacity & Scale
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In 2018, Magang’s crude steel production was ~19.64 million tons.
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Its total assets (2018) were ~ RMB 97.0 billion (~USD 13.7 billion at that time).
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It has multiple production bases including the core Ma’anshan iron & steel works, plus other sites (e.g. Changjiang, Hefei, Wadun).
Recent Developments & Strategic Moves
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Ownership Restructuring: In 2019, as part of China’s steel industry consolidation, Baowu Steel Group became the controlling shareholder by acquiring ~51% of Magang Group.
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New Projects:
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Magang is building a hot-dip galvanizing (HDG) line for automotive sheets, capacity of ~450,000 tonnes/year, expected in operation by December 2025.
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Started operation of the first phase of a special steel project (investment ~RMB 9.2 billion) capable of producing billets/crude steel in several million tonnes once full capacity is reached.
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Recycling / Raw Material Security: Magang and Baowu have been increasing their involvement in scrap steel / recycling resources. One example is capital increase in Ouye Lianjin Renewable Resources to secure scrap steel supply.
Strengths
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Scale & Integration: Upstream iron & steelmaking, downstream finishing, diverse product lines, plus mining/logistics give Magang strong vertical integration.
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Part of Baowu: Being under China Baowu Steel Group gives access to better financing, technology, supply-chain synergies, and less risk in being squeezed by competition or overcapacity.
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Modernization & Expansion: Ongoing investments in high value steel (e.g. automotive steel, special steel), and in environmental / recycling efforts.
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Diverse Product Offerings: Structural steel, specialty steels, galvanizing, hot & cold rolls etc., which helps mitigate risk if one market segment weakens.
