China's Steel Industry Is Facing Massive Restructuring Wave

China's Steel Industry Is Facing Massive Restructuring Wave

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Located in the northern Gulf Economic Zone in Guangxi Fangchenggang 10 million tons of steel base project Nowadays the preliminary work is in full swing. China's Ministry of Environmental Protection has also experts on the content of this project early technical evaluation of the EIA.



Fangchenggang 10 million tons of steel base project in central China's largest steel companies by the Wuhan Iron and Steel Group and Liuzhou Iron and Steel Group joint venture of the total investment of more than 600 billion yuan, the construction scale is 10 million tons. Dai Yi, vice mayor of Fangchenggang City, said the construction of the project, realized with Wuhan Iron and Steel Liu Gang Substantial restructuring.



In fact, the Wuhan Iron and Steel and Liuzhou Steel's "marriage", the Chinese steel industry, nothing new. This year, the Chinese steel industry usher in a major restructuring wave.



2008 6 28, has played a leading domestic steel production boss position with Guangzhou Iron and Steel Group, Baosteel Group, Guangdong Shaoguan Iron & Steel Group restructuring, the establishment of the Guangdong Iron and Steel Group Co., Ltd.. Registered capital of nearly 36 billion yuan, of which Baosteel Group invested nearly 29 billion yuan in cash. Baosteel steel industry restructuring in Guangdong Province opened a regional restructuring of China's steel industry, a large screen. Baosteel chairman Xu Lejiang said this was the reorganization of Baosteel "initial results", will push forward the China Iron and Steel industrial restructuring and industry upgrading.



In just two days after the reorganization of the Chinese steel industry Zaigua whirlwind. June 30, Tangshan Iron and Steel Re-established with the Hebei Handan Iron and Steel Group Co., Ltd., the new company become one of China's largest steel group production, steel production of more than 30 million tons.



Steel industry restructuring this year, why the wind blowing? Zhang Xiaogang, president of China Steel Industry Association, had said in an interview that China has been greatly increased concentration of iron and steel industry, but the concentration has been reduced year by year trend, the top ten iron and steel production accounts for the proportion of total output by 2004 34.7% all the way down to 29.4% in 2006. China Steel has to have the time of reorganization.



"Re the one hand, to increase industry concentration, on the other hand can optimize the industrial layout, adjust the structure of iron and steel industry. For example, Wuhan and Liuzhou Steel reorganization, in which there is a lot of mystery." Dai Yi said.



His analysis, development from a strategic shift to the coastal mainland, the first of cost. Fangchenggang as China's southwest coastline of the most deep-water harbor, Brazil shipping iron ore from the Wuhan Iron and Steel Division Fangchenggang shore and from shore than the difference in the 200 yuan per ton of freight over. Along with market factors. Fangchenggang 10 million-ton steel base not only to the advantage of excellent export terminals, but also covering South West and South regions. Another energy saving reasons, the state required the reorganization of Wuhan Steel and Liuzhou Steel is out of the premise behind the ability of more than 540 million tons of iron, steel making capacity of 900 tons.



"Wuhan Steel and Liuzhou Steel's restructuring, but also promote the development of Gulf Economic Zone, to support countries in the China - ASEAN Free Trade Area framework, the open Gulf Economic Zone development strategy." Fangchenggang Port Group Co., Ltd. Xie Yi, general manager, said.



Learned, Fangchenggang steel base project an officially put into production, annual sales income of 34 billion yuan to provide 2.5 million jobs. Also around this project, nearly 150 projects are under negotiation and downstream matching. Guangxi Academy of Social Sciences Research Associate, visible light



warned: "China's steel industry restructuring enhance the international competitiveness of the market is indeed a good thing, but also to prevent the homogenization of competition. Fangchenggang steel base project such as the Guangdong Iron and Steel Group subsidiary Zhanjiang Steel geographically very close, how to make product differentiation, to avoid vicious competition in the market worthy. "

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