This year, there may be a wave of integration in the steel industry. The crisis is both a challenge and an opportunity for stronger enterprises to turn crisis into opportunity
shenwenrong, chairman of the board of directors and President of Shagang Group, also revealed that at present, Shagang has established mining bases in Australia and Brazil in the form of equity participation or holding, with 1 billion tons of mine resources. "With 1 billion to 1.1 billion tons of mineral reserves, it has become one of the few Chinese enterprises with their own minerals in Australia."
at the same time, Shagang also established coking and coal bases in Shandong and Shanxi in the form of equity participation. Shen Wenrong said that these aims are to maintain the long-term stable supply of the two major raw materials
at the same time, Shagang is currently negotiating cooperation with COSCO and hopes to adopt the method of jointly establishing a fleet. "Our transportation company also has a stake, and the transportation cost is too high. Taking advantage of the downturn of international resources and other industries, we can organize our own fleet and control part of the transportation volume."
"these are our long-term plans. The price in 2008 was too high and was shelved. Now is a good opportunity. For example, the cost of each ship is now half of the original."
the fluctuation of raw material prices brought great losses to steel enterprises in 2008. "At present, it is still in the stage of consuming inventory, and it can only be purchased at the new price at the end of March and early April. Some inventory raw materials can only be used up in March this year in response to the low odor trend of cars. The loss caused by the price reduction of raw materials reached 3-4 billion yuan last year." Shen Wenrong said
"merger and reorganization is also a key point. Now many enterprises come to us and hope that we can take over. Of course, we can't take over all of them. In the central plan for the revitalization of iron and steel enterprises, this infrared light is also an invisible and long wavelength light bar. The state has proposed to engage in several 50million tons, and we can also engage in it. Our total amount is 25million tons now, 30million tons next year, and we can reach 35million tons through acquisition." Shenwenrong revealed that the fixture is the combination of these structures. LANBO Experimental Equipment Co., Ltd. has strong capabilities in mechanical design and R & D, electrical measurement and control, and software development. Shagang's goal is to double its economic aggregate in three to five yearsOn January 14, the executive meeting of the State Council reviewed and approved in principle the plan for the adjustment and revitalization of the steel industry. While coordinating the domestic and foreign markets, strictly controlling the total amount of steel, eliminating and implementing production capacity, and strengthening technological transformation, research and development and introduction, it proposed to give play to the leading role of large groups, promote the joint reorganization of enterprises, cultivate large and extra large steel groups with international competitiveness, and optimize the industrial layout, Improve concentration
while the integration of domestic steel industry is in the ascendant, Baosteel, Angang, WISCO, Hebei, Shandong and other local state-owned enterprises continue to expand and integrate regional steel enterprises. For example, in December 2008, thirty-nine private iron and steel enterprises in Tangshan City, Hebei Province were reorganized into two major iron and steel groups. The two large private enterprises, named "Bohai Sea" and "Great Wall" respectively, have a total capacity of 28million tons, accounting for 51.7% of the city's steel production capacity
Nanjing Securities Analysis believes that increasing the concentration of the steel industry is conducive to controlling production capacity, ensuring the orderly development of the industry, and also helps to enhance the voice of raw material procurement, reduce costs, and promote the development of the industry
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