Tonghua Steel workers in deadly clash over Jianlong takeover

It is reported that about 30,000 Chinese steelworkers clashed with police in a protest over plans to merge their mill with another company and beat the company's general manager to death.

Hong Kong based Information Center for Human Rights and Democracy said in a faxed statement that several hundred people were injured in the clash Friday in the northeastern city of Tonghua.

Employees of Tonghua Iron and Steel Group object to plans for Jianlong Steel take control of the company. Beijing based Jianlong controlled the company temporarily last year, and employees blame Jianlong for financial problems suffered at the time.

Angry Tonghua employees attacked Jianlong GM Mr Chen Guojun during the protest and beat him to death.

As per report, workers were angry that Mr Chen was paid some CNY 3 million (USD 438,000) last year while some retirees received as little as CNY 200 (USD 29) a month.

Jianlong took over Tonghua last year but suffered losses after steel prices dropped and jettisoned the company but revived the takeover plan this year after steel prices rebounded, making the business profitable again.

Beijing is trying to streamline China's sprawling steel industry, the world's largest, by orchestrating a series of mergers aimed at creating globally competitive producers. The mergers often are accompanied by layoffs that sometimes spark complaints that workers receive too little severance pay.

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