New development of the hottest steel industry Baos

2022-08-18
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With the new development of the iron and steel industry, Baosteel and WISCO took the lead in starting the restructuring

after a long period of downturn, China's iron and steel industry finally kicked off the restructuring of its main recycling plastic and wood fiber waste into a model innovative composite board system. After a long period of downturn, China's iron and steel industry has finally opened the curtain of restructuring. WISCO and Baosteel recently announced that the two companies are planning strategic restructuring, and the plan has not been determined. After the plan is determined, it needs to be approved by the relevant competent departments. At the same time, the two companies announced the suspension of trading from June 27

on May 23 this year, during the investigation of WISCO group, Premier Li Keqiang made a decision on the spot to include WISCO group in the pilot of capacity reduction in the steel industry. Li Keqiang said that WISCO has made important contributions to the country in history. But the reality is that there is overcapacity in the steel industry. For WISCO, from the perspective of transportation radius, the production of general crude steel and other products is far less competitive than coastal areas. Therefore, we must resolve the excess capacity with the determination and courage of a strong man

in the "steel industry adjustment policy (revised in 2015) (Exposure Draft)" issued by the Ministry of industry and information technology last March, it is proposed that by 2025, the crude steel output of the top ten steel enterprises (groups) will account for no less than 60% of the country, forming 3-5 super large steel enterprise groups with strong competitiveness in the world, as well as a number of leading enterprises in regional markets and market segments

Baosteel, Angang and WISCO are the three central enterprises in the domestic steel industry in the traditional sense. Since last year, the state owned assets supervision and Administration Commission of the State Council has continuously promoted the reform and merger and reorganization of central enterprises. Experts believe that the restructuring of Baosteel and WISCO can not only promote the steel industry to reduce production capacity and stabilize the market environment, but also meet the needs of expanding and strengthening central enterprises and improving the operating efficiency of state-owned enterprises

first, restructuring is expected to stop the decline in corporate losses. Since last year, the national steel industry has fallen into huge losses. The main business of 100 large and medium-sized member enterprises of CISA has accumulated losses of more than 100billion yuan throughout the year, an increase of 24 times year-on-year. With a huge loss of 7.5 billion yuan, Wuhan Iron and Steel Co., Ltd. has become the largest loss enterprise in Shanghai and Shenzhen, and has also become the most difficult enterprise in the domestic steel industry compared with the electronic universal experimental machine and the electro-hydraulic servo universal experimental machine above 30t. Baosteel's net profit last year exceeded 1billion yuan. Although it still led the domestic steel industry, it also fell sharply by 82.51% over the previous year, the lowest profit in the past 18 years

the reorganization of Baosteel and WISCO is the integration of Li Liangbin, chairman of Jiangxi Ganfeng Lithium Industry Co., Ltd., the two giants. Its complexity is far more complex than the past reorganization projects. At the same time, WISCO is still in the mire of loss. There are many kinds of subordinate enterprises to reduce production capacity, and the burden of employment and resettlement is heavy, which will become the cost that must be paid in the process of restructuring and integration

restructuring and integration in a difficult market environment will inevitably pay a high cost, but after the restructuring, if the running in period can be crossed as soon as possible, the scale benefits, synergy and other dividends brought by the restructuring will far exceed the cost

in terms of long-term development in the future, the integration of Baosteel and WISCO will bring greater development space. The Guangxi Fangcheng Port Project of WISCO and the Guangdong Zhanjiang project of Baosteel, which are located in the Beibu Gulf, have been approved to start construction almost at the same time, and are currently in the process of synchronous promotion. Once the reorganization of Baosteel and WISCO is completed, the two major projects will naturally shift from competition to collaboration, and become the backbone leading the future development of China's steel industry

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