Anshan Iron and Steel Group, one of the steel giants in China, would merge with another major steel company soon, General Manager Liu Jie said in Beijing Saturday on the sidelines of the national legislature's annual session.
  
The merger of Anshan Steel and Benxi Steel, both located in northeast China Liaoning Province, will create China's second largest steel producer with an annual capacity of more than 20 million tons, next only to the Shanghai-based Baosteel, said Liu, without giving any details of the deal.
  
Baosteel announced earlier this year that it produced 21.38 million tons of steel last year, the first China steel company with an annual output surpassing the 20-million-ton mark.
  
Baosteel General Manager Ai Baojun, also a deputy to the national legislature, told Xinhua his company still has a long way to go if it wants compete with multinational steel moguls in production capacity, market share of high-end products, cost advantages, self-owned intellectual property rights and core competitiveness.
  
Analysts said the merger of the two northeastern steel companies would mark a fresh move of China to sharpen the competitive edge of its large state-owned enterprises, which dominate in major industries concerning the national economy and the people's livelihood.

(Xinhua News Agency March 12, 2005)