Two of the biggest state-owned steelmakers in northeastern China, Ansteel and Ben Gang Group Corporation, officially merged on Friday.

After the merger, Ben Gang Group Corporation became a subsidiary of Ansteel Group, demonstrating China's supply-side reform efforts in the steel industry and its goal of revitalization in northeast China

Tan Chengxu, chairman of Ansteel, said the new company will become an important part of Ansteel's industrial layout, and a strategic force in achieving its goals of an annual output of 70 million tonnes of crude steel and 50 million tonnes of iron concentrate, and around 300 billion yuan (about $46.6 billion) of revenue and 10 billion yuan of profit by 2025, Xinhua reported.

On August 20, Ansteel and Ben Gang inked a deal on the merger, and established 20 project teams to do transfer and restructuring work.

The new company will have an annual production capacity of 63 million tonnes of crude steel, ranking third worldwide after China Baowu Steel Group Corporation Limited and Luxembourg-headquartered ArcelorMittal.