Baosteel Group and WISCO made a merged program recently, also the long-lasting integration of Anshan and Benxi Iron and Steel will have a substantive breakthrough.
Industry experts said that China's steel industry has reached the point that must to do adjustment in the context of nowdays industry development. Institute of Shinestar Steel said that compared to the previous restructuring, the merged program facing a big challenge, but China government's determination to reorganize the steel industry is greater,especially the ongoing promotion of Baosteel Group and WISCO merger and reorganization, they will become the successful benchmarking of steel industry restructuring.
In the course of China's steel industry development, the huge excess capacity is consuming industrial concentration, while the long-term product mix is not reasonable, so that China is facing the embrassing situation that the domestic crude steel production capacity surplus, high-end products need to import. Nevertheless, Shinestar Holding Group focus on product development, the opened flat, hot rolled plate and other outstanding products obtained a good market response.
The ultimate goal of the restructuring is to reduce production capacity and adjust the structure, China's steel industry has set off a new round of mergers and reorganization tide, how to break the limited of enterprises meger, how to adjust the industry Product structure, so that China's steel industry out of the simple scale. How to start a new industrial structure, which is China's steel industry new issues.
From national leve, it is urgent to change this situation.In recent years, government brewed some policies, and began to make new industry development plan. 2016, it is the industry policy intensive landing period.
On February, the State Council issued 'The Objection Resolve Excess Capacity, Develop in the Difficulities'which pointed out: China will spend 5 years on reducing crude steel production capacity 1 hundred million -1.5 hundred million tons since 2016.
MIIT planned objectives when do public consultation on 'Iron and Steel Industry Adjustment Policy'. 2017, China's steel industry excess capacity can be effectively resolve, production capacity will be reasonable, capacity utilization rate will raise to 80%, industry profitability and asset return will back to a reasonable level.
The main way to reduce production capacity is mergers and acquisitions. The "policies" clearly that China's top 10 steel manufacturer of crude steel production accounts for the proportion of not less than 60% at 2025. Also the "objection" clear that chieve substantive progress in the steel industry mergers and acquisitions within 5 years.
For the industry adjustment policies, Shinestar Holding Group made positive response, will continue to hard-working, will produce more and more excellent products, will offer the best product and service to customers.