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Steel industry accelerate to mergers and acquisitions by double shu





Article Author Biography
Steel industry accelerate to mergers and acquisitions by
Article Posted: 01/10/2012
Article Views: 91
Articles Written: 88
Word Count: 779
Article Votes: 0
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Steel industry accelerate to mergers and acquisitions


 
Business News,Business Opportunities,Import - Export
2012, restructuring and adjustment will become the key words of steel industry. “Because the market is not good, raw material prices always high, coupled with stringent national control policies, for iron and steel enterprises in 2012, a transformation must be begun." An official of steel enterprises in Shandong told reporters.

Analysts told reporters in 2011, China's crude steel output approaching 700 million tons, but the steel mills and traders did not increase with earnings growth. In the first year of "12th five years plan", the steel industry is still in a difficult front line, indicating the road is still bumpy back.

Over the past 10 years, China's steel industry development has the golden years. Crude steel production has 627 million tons in 2010, representing an increase of 392.5 percent in 2000, and the annual compound growth rate is 17%. With steel production growth spurt, the steel industry has suffered overcapacity, low concentration, product homogeneity, the regional distribution of unreasonable, and other environmental issues in the throes of development.

China Steel Association deputy party secretary Luo Bingsheng had predicted, given the depth of macro-control to promote, market demand for steel in 2012 will fall, the steel industry may face greater difficulties than in 2011.

Mergers and acquisitions will be a breakthrough

Minister of Industry Miao Wei said, 2012 will introduce the steel industry, mergers and acquisitions and other key implementation.

Miao Wei pointed out that in 2012, the Ministry will focus on mergers and acquisitions as a breakthrough year focus of the work, continue to promote key industries, trans-regional merger and reorganization of enterprises, the introduction of iron and steel, automobiles, cement and other key industry mergers and acquisitions to implement programs to promote improve the promotion of corporate mergers and acquisitions policy system.

Not long ago, the "12th five years plan" said it would focus on support competitive large steel enterprises to develop regional, cross-ownership mergers and acquisitions. Full play to the large steel enterprise group's role in promoting the formation of 3-5 furniture and has a strong core competitiveness and international influence of the enterprise group. Iron and steel enterprises to actively support the advantages of mergers and acquisitions area, significantly reducing the number of iron and steel enterprises, the promotion of regional steel enterprises to speed up industrial upgrading, and constantly improve the level of development, the formation of 6-7 furniture with strong market competitiveness of the enterprise group.

Steel enterprises plan to break through

Let deformed steel bar for example, the global real estate, infrastructure industries in order to comply with environmental protection and energy saving trend, gradually began to say no to the low-end steel. However, China's production of low-end deformed steel bar production accounted for about 40%, the vast majority is more low-end steel tube, which limits the quality of steel exports, while domestic enterprises need high-end steel pipe had to be imported from abroad with a high price.

Metallurgical Research Institute Li Xinchuang considers that, as society advances, downstream users of steel variety, quality, and service put forward higher requirements. Steel prices not only meet the users’ number, variety and quality requirements, but also to meet their price and service requirements.

Official of steel enterprises in Shandong said: "As the profitability of the blast furnace can be eliminated, and now the production line is at a loss, you must go out, mix with downstream customers, and understand their needs in accordance with this line of thought. According to this thought, the steel enterprise has decentralization of the downstream sector of business customers, according to customer demand to produce steel. In addition, many domestic steel enterprises in order to be able to be developed, adopted a way to build factories abroad. Reporter has learned that at least six steel enterprises in 2011 built factories in overseas. This year the trend will not be weakened. Chinese steel companies first began to build steel mills in overseas is Baosteel in 2007, had plans joint venture with CVRD in Brazil, but Brazil's demand was too high and failed. After Wuhan Iron and Steel, Anshan Iron and Steel was also a bold attempt, respectively, invest and build factories in Brazil and the United States. According to the steel industry's "Twelfth Five-Year Plan", the state will encourage more steel enterprise "go oversea."

Ontrend Industrial Limited Steel Bars produced by high mechanical strength, good ductility, toughness, cold resistance and weld ability, are widely used in large and medium-sized steel reinforced concrete structure of the force. Also includes a series of production of Tinplate, ERW Steel pipe and other products, the company solemn promise of “perfect quality, low prices, excellent service” to provide users with quality service.

Related Articles - deformed steel bar, steel tube, steel pipe, steel industry, steel enterprise, steel company, 2012, mergers and acquisitions,

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