en.Wedoany.com Report on Mar 23rd, In the spring of 2026, a "wave of acquisitions" quietly unfolded in China's steel industry. From Shihang Special Steel taking control of Taishan Iron & Steel, to Xugang Group acquiring Zhenbei Iron & Steel, Wuzhou Xinfeng Special Steel merging with Dongpeng Stainless Steel, and Luli Group making its move into the Guangxi market, a series of mergers, acquisitions, and restructuring actions have been intensively implemented, stirring the market. 
Under multiple pressures such as capacity reduction, demand divergence, intensified environmental protection, and trade frictions, steel enterprises are declaring through action: the era of extensive growth relying on scale expansion has ended, and a new transformation centered on resource integration and value reshaping is accelerating.
Shihang Special Steel Takes Control of Shandong Taigang Holding: Building a Complete Product Matrix
On March 13, 2026, Shihang Special Steel Group Co., Ltd. completed its controlling stake layout in Shandong Taigang Holding Co., Ltd. with a capital contribution of 3 billion yuan, acquiring an 80% stake in the company. Shihang Special Steel Group Co., Ltd. controls Shandong Taishan Iron & Steel Group Co., Ltd. through Shandong Taigang Holding Co., Ltd.
It is understood that Shihang Special Steel Group was established on December 27, 2000, in Tai'an City, Shandong Province. Its main business is the production and sales of rebar, round steel, mine roof bolt steel, angle steel, hot-rolled coil, etc. Taigang Group and 22 other companies primarily focus on hot-rolled and cold-rolled coils, complementing Shihang Special Steel's product offerings.
Xugang Group Acquires Zhenbei Iron & Steel: Vertically Extending into the High-end Special Steel Sector
In January 2026, Xugang Group completed the overall acquisition of Zhenbei Iron & Steel.
This acquisition aims to deeply optimize the product structure and build a technological transformation and upgrade project for high-end special steel varieties. Upon completion, the project will not add new crude steel capacity but can produce over 2 million tons of high-end special steel annually, generating additional output value exceeding 2 billion yuan.
It is reported that as early as the "14th Five-Year Plan" period, Xugang Group had already begun its transformation and upgrading, promoting capacity integration and equipment renewal. It successively restructured the capacities of Rongyang and Longyuan two steel enterprises and built a full-process production line with a 2120 cubic meter blast furnace. This overall acquisition of Zhenbei Iron & Steel marks the second restructuring of another enterprise in Xugang Group's development history, signifying an important step for the group towards high-end special steel production.
Wuzhou Xinfeng Special Steel Merges with Dongpeng Stainless Steel: Perfecting the Industrial Chain Layout
Wuzhou Xinfeng Special Steel Co., Ltd. is located in the Wuzhou Stainless Steel Products Industrial Park, covering an area of 400,000 square meters. It is a core enterprise in the park and one of the key projects in Wuzhou for undertaking industrial transfer from Guangdong. The project has a total investment of 2 billion yuan and an annual production capacity of 1 million tons of stainless steel.
This merger further perfects Xinfeng Special Steel's industrial chain layout, enhances quality control capabilities, and consolidates its leading position in the regional stainless steel market.
Luli Group Acquires Two Enterprises: Making a Move in Guangxi, Diversifying Layout
On March 7, Luli Group acquired Guangxi Deke New Material Group Co., Ltd. and Guangxi Deli New Material Co., Ltd., officially entering the Guangxi market and making a cross-industry layout.
Leveraging Luli Group's strong financial strength and Guangxi's unique forestry resource endowment, Deke and Deli have been injected with strong development momentum. This strategic acquisition opens a new chapter for Luli Group in deploying its forest products industry nationwide, integrating high-quality resources, and achieving leapfrog development.
On March 6, 2026, at the economic-themed press conference of the Fourth Session of the 14th National People's Congress, Zheng Shanjie, Director of the National Development and Reform Commission, stated: support will be given to carrying out mergers and acquisitions to promote the resolution of "involution-style" competition. This statement injected strong policy momentum into the consolidation wave in the steel industry.
From the perspective of the industry's macro environment, in 2026, China's steel industry exhibited characteristics of "weak supply and demand, structural divergence." Demand for steel used in real estate continues to decline, while steel used in manufacturing has become the core support for demand. Against this backdrop, steel enterprises extending their industrial chains, promoting diversified layouts, and reconstructing industrial layouts through mergers and acquisitions is both an inevitable choice to cope with industry transformation and a concrete practice in implementing policy requirements.
