Anyang Steel produces a mixed ratio of flat sheets and long sheets, while Anshan Steel only produces high-value added products like flat sheets. Anyang's long sheet products would fill the gap for Anshan Steel in the market for low value-added products, he said.

Anyang Steel has an annual production capacity of 10 million tons. It posted a loss of 303 million yuan in the first nine months of 2009, compared with a profit of 965 million yuan in the year ago period.

Its total assets were 26.9 billion yuan as the end of September 2009. The company reported revenue of 16.7 billion yuan in the first nine months of 2009.

Wang Ziliang, chairman of Anyang Steel, estimates that the company would post revenue of 32 billion yuan and profit of 1 million yuan for 2009.