SHANGHAI - China Baowu Steel Group Corporation on Thursday signed investment agreements with the Shandong provincial government on the takeover of the state-owned Shandong Iron and Steel Group Co Ltd.

According to the investment agreements, China Baowu, a major steelmaker headquartered in Shanghai, will hold 49 percent stake in Shandong Iron and Steel. The Baoshan Iron and Steel Co Ltd, a core enterprise of China Baowu, will hold 48.61 percent stake in SD Steel Rizhao Co Ltd.

China Baowu saw its steel output reach 130 million metric tons in 2022 and Shandong Iron and Steel has a steel production capacity of more than 20 million metric tons. The acquisition marks a step toward consolidating China's domestic steel industry and helps the steel industry achieve high-quality development.