A few years ago, China's steel industry had ushered in a wave of integration, and many large steel companies were born. However, as the industry entered the era of low profit, the integration period of the steel industry began to face problems such as poor profitability, limited cost control, and poor overall coordination. Obviously, the integration of the steel industry in the new era needs more new ideas. While strengthening the concentration of the industry, we should strictly control the growth of production capacity, adjust the product structure, and enhance the profitability of the enterprise. In the "Steel Industry Adjustment and Revitalization Plan" promulgated by the State Council in 2009, it was proposed to promote the essence of the Group's internal production and marketing, unified management of people and property by Anshun Group, Guangdong Iron and Steel Group, Guangxi Iron and Steel Group, Hebei Iron and Steel Group and Shandong Iron and Steel Group. Reorganization; promote the reorganization of Anshan and Panzhihua Iron and Steel, Northeast Special Steel, Baosteel and Baotou Steel, Ningbo Iron and Steel, etc., and promote Tianjin Steel and Tiantie, Tiangang, Tianjin Metallurgical Company, Taigang and the provincial steel enterprises Reorganization within. The plan also proposes that, by 2011, the company will form a large-scale steel enterprise with a capacity of more than 50 million tons and a strong international competitiveness, such as Baosteel Group, Anben Group and Wuhan Iron and Steel Group, and form a number of production capacity of 10 million. A large-scale steel enterprise of 30 million tons. The plan pointed out the direction for the restructuring of the steel industry at that time, and the industry consolidation was surging. Baosteel reorganized Ningbo Iron and Steel Co., Ltd., and Jinan Steel, Laiwu Steel and Rizhao Steel in Shandong were reorganized to the Shandong Iron and Steel Group, with a total production capacity of more than 30 million tons. In June 2008, Tangshan Iron and Steel and Handan Iron and Steel merged into Hebei Iron and Steel Group, and became the country's largest steel enterprise group with a capacity of 31.75 million tons at that time. What is the profitability and operational effectiveness of various steel companies after integration? Have you already passed the running-in period? These are probably the most concerned topics in the industry. However, it seems that the answer submitted by the industry may not be satisfactory. Recently, the news that the Shougang Jingtang project was exposed to huge losses was pushed to the forefront. According to the data, Jingtang Steel has a net loss of more than 5 billion yuan since it was put into production in 2009; in the first quarter of 2011, it had a net loss of 913 million yuan. Valin steel Valin Lianyuan Iron and Steel Company has also factor in huge losses and a serious drag on the company's performance in the first three quarters of this year, the company still expects a loss of 164 million to 184 million yuan. The reasons for the losses of various companies are different, but the current industry boom is sluggish, and the oversupply of the market has undoubtedly increased the operating pressure of enterprises. At present, China's steel industry has low efficiency, and the average sales profit of the industry is only about 3%. In the top of all industries, many steel companies are on the verge of losing money. Overcapacity is still a sword hanging over the steel industry. In 2009, the industry plan predicted that by 2011, the output of crude steel will be about 500 million tons, and the apparent consumption will be about 450 million tons. However, according to the China Steel Association, domestic crude steel production from January to September this year has reached 526 million tons, an increase of 10.7%, and is expected to exceed 700 million tons throughout the year. Obviously, such a scale of production has greatly exceeded the original development expectations. In this context, the merger and reorganization of the steel industry should be more cautious, avoiding waste of resources and forming new cases of production and losses. Due to the persistence of long-term extensive development and accumulation, China's steel industry needs to strengthen structural adjustments while strengthening mergers and acquisitions, improve product R&D and productivity with high added value, and avoid creating new homogenization competition. The insiders suggest that in the case of increasing industry concentration, the production capacity should be strictly controlled. At the same time, the industry should strengthen organization and coordination, establish a number of major common technology research and development platforms, and integrate the technical resources of the steel industry to enhance the enterprise market. Competitiveness and promotion of industrial restructuring.
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