Merger and reorganization of China’s steel industry is about to open the “era of big steel enterprises”


Since 2017, the market-oriented restructuring of domestic steel enterprises has become one of the important means.With the end of capacity reduction in the 13th five-year plan, China’s steel industry is gradually turning to structural reform, and merger and reorganization will usher in the era of large steel enterprises.According to the introduction, at present, the merger and reorganization of steel enterprises is in the depth of development, there are a large number of enterprises are brewing restructuring negotiations.To achieve the goal of 60% concentration of the steel industry by 2025, there will be more large-scale restructuring.Since 2016, baosteel, wuhan iron and steel restructuring established China baowu group, steel merger and reorganization of the news frequently seen in the press, citic group strategic restructuring of Qingdao special steel, shagang and bengang restructuring of northeast special steel, Beijing jianlong heavy industry group restructuring of north manchuria special steel, siyuan he fund restructuring heavy steel.Even some local governments issued relevant policies to actively match the merger and reorganization among steel enterprises.It is worth mentioning that private steel companies have also led a part of the restructuring.Jincheng shazhou special steel restructuring in the northeast, as a private steel enterprises restructuring state-owned enterprises model.Recently, hebei, jiangsu, shanxi and other places have introduced steel industry development planning targets.Among them, by 2020, hebei iron and steel enterprises will form “2310″ industrial pattern, including 2 enterprises with international competitiveness, 3 enterprises with local strength and 10 steel enterprises with characteristics;Jiangsu actively forms the “134″ pattern;Shanxi plans to have 10, down from the current 27.Sichuan strives to build a powerful and competitive 10,000-ton backbone iron and steel group with a total output value of 350 billion yuan.In terms of policies, the 13th five-year plan for upgrading the iron and steel industry clearly requires the continuous upgrading of steel varieties, quality and service demand, and responds to the national strategic plan of “building a strong manufacturing country and an innovative country”.According to tong Lin, the steel industry supply-side structural reform policy, adhere to the principle of structural adjustment, to mergers and reorganization as a means to deepen regional layout coordinated development, adhere to green development, in order to reduce energy consumption, reduce pollution emissions as the goal, to build a new pattern of steel manufacturing and social harmonious development.Wang lianzhong, executive deputy secretary general of quanlian metallurgical chamber of commerce, said that enterprises with conditions should be encouraged to seize the opportunity to carry out cross-regional and cross-ownership mergers and reorganizations, and strengthen the integration of resources, which is conducive to balancing the environmental capacity of different regions and reducing or avoiding homogenous competition within the industry.At present, China’s steel production capacity and capacity utilization rate has basically reached a reasonable range, we should open financing channels, to help steel enterprises mergers and reorganization.Zhang zhixiang, President of the all-china metallurgical chamber of commerce, admitted that the number of steel enterprises could not always be as many as four or five hundred, will gradually reduce.It is an irresistible trend for superior enterprises to merge with weak ones and for large enterprises to reorganize small ones. Only by increasing the degree of concentration can we effectively control production capacity, adjust structure, allocate resources and prevent risks.

Post time: Feb-18-2019
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