In steel assist: Major steely company recombines be involved

A report that association of Chinese iron and steel industry issued yesterday expresses, in the near future, produce as iron and steel can release and of demand increment decrease, market competition will be intense with each passing day, what annex weighs group general to become below one phase to develop is thematic, major steely company will be involved in recombines or add up.

This report says, steely enterprise should be done do greatly have by force only through noting endowment, buy, recombine jointly wait for a form to come true, make overmatch becomes stronger; In the meantime, the experience that old iron ore negotiates proves, the industry is spent centrally too low make our country steely course of study is in adverse position in international competition, this is made urgent need forms powerful associated entity inside course of study.

Current, annex of domestic steely industry recombines a process to had been accelerated apparently, but still show inadequacy. According to steely industry policy, to 2010, recombine through combination, china will be formed 2 - 3 30 million tons of class, a certain number of ten million ton the group of has international competition ability industry of oversize iron and steel of class, the proportion that output of before at the same time home is ranked 10 steely business steel wants to hold countrywide output achieves 50% above.

Afore-mentioned reports say, accordingly, the province city such as Heibei, Shanghai, Beijing, Liaoning, Shandong, Jiangsu, Hubei, Chongqing, Sichuan, Inner Mongolia, Shanxi unites complete province by enterprise of bibcock big iron and steel steely industry and cross regional combination to recombine a situation, clutching form or had formed.

In fact, current and steely industry grows grim reality to also coercing steelworks holds a group in the arms to warm oneself. Data shows, steel price already was in 10 weeks continuously drop posture. The a week after National Day, price of domestic steel products is to appear more steep fall, drop on average in 12% the left and right sides, become 8 years to come market of domestic steel products drops a week with the biggest range.

Zhang Xiaogang of president of saddle steel group ever expressed, brutal competition will make weak power company is forced to choose to exit the market, be washed out or by conformity. A lot of weak power companies will begin to seek an opportunity, seek as steely as the advantage enterprise to undertake associated recombining. Because only with resource safeguard, technology equips,the company with advanced, stable market recombines, ability casts off the destiny that is washed out by the market.

Because concern administer, the complex issue such as system of ownership, interest, taxation and personnel arrangement, cross area to recombine jointly all the time block up is worn the process that steely combination recombines. To this, in steel assist the report says, the combination that this can draw lessons from materiality of Heibei steely group recombines this one successful case. After this group holds water, channel of existing company pay taxes keeps changeless, the interest that balanced various places well concerns. (Origin: Negotiable securities times)
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