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Private steel enterprises is more to be "wedding"

    Restructuring China's steel enterprises, such as wave attack, one after a wave has hit, Shandong Iron and Steel Group was set up in less than three months,booster cables the 28th of this month, the United Guangzhou Iron and Steel Baosteel, Guangdong Shaoguan Iron and Steel form steel Group held a formal opening ceremony, the next day morning, Hebei Iron and Steel Group has officially launched.

    It can be seen, in 2008 the development of China's steel industry,battery clip the steel prices have started joint reorganization sounded "Assembly." But this time, we seem to ignore the danger is living in private enterprises, in fact, tow rope they need attention, even more urgent need for marriage and funerals.

    With iron ore and other raw materials prices high, production cost pressures intensified, ratchet tie dowm frequent restructuring of state-owned steel enterprises, domestic private steel enterprises were seriously impact on, and sometimes during, skinning, bad, mergers and acquisitions, bankruptcy and other words become the private steel companies spoken language.

    Some people have said that iron ore prices rise, wave after wave of storms off, only the ship can withstand, and that the ship is in private enterprises will not be found. Indeed, manufacturers generally rising prices of raw materials difficult to find a survival situation, especially for private enterprises is even more problem. Some would say that you can raise prices moderately ah! The author believes that large-scale iron and steel enterprises may, in fact, is their common "trick", but medium and small manufacturers (most of them are private enterprises) is simply impossible to determine the price of their products, they not only talks in raw material prices no right to speak, in the product price can only go with the back of the market.

    Many private steel companies produced steel products, specifications and state-owned enterprises produced exactly the same price is also slightly lower than the state-owned enterprises, first product is quite popular, but because of the private steel enterprises in itself has a "casual," "chaos", "Miscellaneous" and so on, resulting in individual enterprise funds is weak, low technology and equipment behind, so that competitiveness is not high, quality, and credibility under partial.

    In response to this phenomenon, the early parts of these private enterprises in a timely manner was tentative resource integration and restructuring, to encourage private enterprises to develop in the direction to the Group, and ultimately achieving the purpose of enhancing the competitiveness of enterprises, but also will conform to the world steel industry consolidation restructuring trend of development. It is understood that, in September 2007 acquisition of Henan, Jiangsu Yonggang Sha Steel, the first time the sentence meaning of inter-provincial representative consolidation and reorganization, but also the first inter-provincial private steel merger and reorganization among enterprises.

    In fact, the merger between the private steel enterprises reorganization, marriage and funerals steel industry has always been commonplace, but today is worth noting that, private steel enterprise restructuring is too slow down the pace of marriage.

    In view of the immediate situation, the acceleration shuffling to speed up the consolidation and reorganization, and perhaps will be the private enterprises to regain life is "good medicine." The morning of June 11 this year, Vice Governor of Hebei Province, announced the integration of Sun Ruibin Tang Steel Group, Handan Iron and Steel Group, Hebei Iron and Steel Group Co., Ltd. set up at the same time, the province made a timely integration of the private steel companies and mining resources, the progressive realization of group companies diversified ownership.

    There is no doubt that only through integration and restructuring in order to make private enterprises bigger and stronger, invincible. China Metallurgical Industry Planning Research Institute Li Chong also said: "Rotary big to small, scattered and can change the current chaos, the adjustment of product structure."

    It appears that the determination of the government and market pressures, the integration of private steel enterprises has reached the point where there is no escape route, is "married" is "married" will depend on the strength of private enterprise and leadership among the avant-garde sense of the . Driven by multiple factors at home and abroad, most of the steel industry estimates, 2008 ~ 2010, China's steel industry will usher in the largest reorganization of the history of the wave, the result may affect the competitive landscape of China's steel industry.

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