Mergers and acquisitions dissolve excess capacity problem

As early as in 2005, the national development and reform commission published "the iron and steel industry development policy" is put forward, to make our country iron and steel power and power, through merger and acquisition way to sharply reduce the amount of iron JIS MS plate flat welded forged flange and steel smelting enterprises, such as the formation of several thousand - mega enterprise groups with international competitiveness. Since then, China's steel industry is a major restructuring again: baosteel restructuring steel, anshan iron and steel for pangang, tanggang absorption merger hangang and chengde, etc.

Until today, the steel industry mergers and acquisitions was still going on, and policy points to more specific. Earlier this year, the ministry 12 departments such as joint development and reform large diameter ASTM end cap for water pipe commission jointly issued by the "about accelerating guidance of key industry enterprise merger and reorganization, the auto, steel, cement, shipbuilding, electrolytic aluminum, rare earth, electronic information, medicine and agricultural industrialization, a total of nine big merger and reorganization of the work in the field of industry and puts forward the main target and key tasks, in particular, has been clear about the Electric Resistance welding carbon steel tube industrial concentration required to achieve by the end of 2015. In nine big industry of iron and steel, automobile has become the key ministries to promote merger and reorganization, the ministry said the key support large-scale iron and steel enterprises group in cross-regional, cross ownership merger and reorganization, actively support steel enterprise merger and reorganization of regional advantage. Encourage steel enterprises extends the industrial chain, key support for iron and steel enterprises bigger and stronger. The China iron and steel association, Mr Xu said in an interview with the media, overcapacity is China's manufacturing industry, including steel, face a common problem, the steel industry is especially typical.

And marketization of mergers and acquisitions is an important means of the steel industry overcapacity. On August 3, cisa, deputy secretary general, chief analyst at late jingdong council in cisa, speed up the steel companies restructuring, improve the industrial concentration is the bottom line of the iron and steel industry policy, but now the industry concentration degree is not enough, can only have their valuation.