China’s National Enterprise Information Publicity System, the Baowu Group, and its subsidiaries Bayi Iron & Steel and Huabao Investment have jointly established Xinjiang United Steel, Kallanish notes.

The registered capital of the new steel company is CNY 1 billion ($141 million), and Bayi Iron & Steel holds a 50% stake. Baowu Group and Huabao Investment separately subscribed to CNY 250 million and each holds 25% of the shares.

Bayi Steel stated in its 2020 business plan that it will integrate steel production capacity in the Xinjiang region (see Kallanish passim). In the plan, the government instructed Xinjiang to eliminate steel capacity of 6.85 million tonnes/year, to improve its industrial concentration, and have 90% of capacity controlled by the top three regional steelmakers. These are Baosteel Bayi Steel, Xinxing Pipes and Shougang Yili. 

In 2019, Xinjiang steelmakers produced 12.37 million tonnes of crude steel, up 7.1% year-on-year.