"Eldest brother" steel can hebei mighty DuanWan walked out of the transition dilemma

After more than ten years to explosive growth in steel production, at present the national steel industry widespread phenomenon of excess production capacity, industry need to be adjusted to restore. As China's first major steel-producing province, hebei iron and steel industry is not only to reduce excess capacity, in the long term, some cities mills retreated city relocation, multiple, and integrating the bulk of private steel mills restructuring, transformation and upgrading of enterprises under the market reversed transmission three questions can't avoid. In spite of many difficulties, but the personage inside course of study points out that the integration of hebei iron and steel enterprises and transition time, must be on the premise of respecting the rule of the market, changes in hebei iron and steel industry for a long time to manage the extensive, structural imbalances and other ills, only then the iron and steel industry is expected to reshape the health development.

Companies worry about prospects after restructuring

In June last year, the national development and reform commission approved the hebei iron and steel industry structure adjustment scheme, including shijiazhuang, tangshan iron and steel company abundant south bohai sea, handan iron and steel company wuan JiNa iron and steel company, a total of four retreat city taihang steel company relocation project. At present, four projects have been started, to be completed by the end of 2017 to move. The move can realize the reorganization of steel production capacity reduction, and can solve the problem of urban pollution iron and steel enterprise.

The reporter understands, as a result of the program planning, early reply late, the grim situation of the current steel market, enterprise own capital tension, bank loans, the limit of credit. Besides steel co, the private steel companies to move funds under a lot of pressure and time pressure, but the main is money pressure, enterprises worry about "a move is dead".

JiNa steel company President assistant Wei Kao said, relocation is equal to the reconstruction, with two new factory of 1260 cubic meters of replacement of the existing five small blast furnace, blast furnace capacity from 6.3 million tons to 5 million tons, is expected to invest 10 billion yuan. After the demolition of old factory, more than 90% of the equipment can continue to use the equipment assets of 6 billion yuan will become a pile of scrap metal.

Wei Kao said, relocation face the biggest difficulty is the capital and market. Although listed in the plan, but not necessarily can loan from the bank, hope the old factory land degeneration in advance of commercial land, the mortgage loan to the bank. Market situation is not good, after the new plant put into production that day better. "Although the move is risky, but it is also a rare opportunity, enterprises' black 'will be turned white, such as land, equipment, environmental protection will be legal formalities. JiNa steel will become the first private steel companies move to eat crab, the results may eat crab roe, also may be poisoning and death."

Wuan xue-sheng wei said the mayor, reduce excess capacity and retreat city relocation intertwined, the latter is more difficult than the former one. In terms of investment of 3000 yuan of per ton steel, steel 2 million tons, the taihang JiNa only 2 million tons of project investment is 6.6 billion yuan and 9 billion yuan respectively, enterprise to raise at least 40%, now allows businesses to take out 2.3 billion cash is also very difficult. In addition, the government also took out 3.5 billion yuan for water and electricity road infrastructure facilities, the city of wuan hard to burden its own resources.

Tangshan abundant south area the abundant iron and steel company to integrate the city nine iron and steel enterprises to form the bohai iron and steel company, moved to the shore of the bohai sea, to squeeze the city existing 12 million tons of production capacity to 8 million tons. Deputy general manager of kun said, this will directly and indirectly caused 15000 laid-off workers, new bohai steel company no matter how to also can't absorb so many workers.

Steel bosses want to be "the boss"

Hebei province has 90 private steel joint enterprises, crude steel production accounted for two-thirds of the province, profits accounted for more than eighty percent. Hebei metallurgical industry association, vice President of ji-jun song said: "in hebei province private steel on a big scale, profit ability is strong, it's a pity that is fragmented, wuan city at county level is only 16 private steel mills, 35 million tons of production capacity. And the low industrial concentration, each enterprise, on average, only 1.39 million tons of steel production, low-end product structure, enterprise integration and restructuring difficult."

Wuan xue-sheng wei said the mayor, wuan 16 in the steel mills have four belongs to a kind of enterprise, better profitability, every other all sorts of difficulties, some force to maintain production, some have the risk of collapse at any time. By the end of 2017, to integrate into 4 to 5 large steel companies, difficult.

Ji-jun song that private steel mills integration is not who eat who, can take the assets in equity, to form a joint-stock steel company, the original enterprise boss into directors, who shares more than when the chairman of the board of directors, hire a professional manager's executive board will. But xue-sheng wei believes that corporation make integrated reorganization, no problem in theory, in fact there is a big difficulty. "Of wuan a very typical, parents take charge, and sons to work in his father no problem, then he quit, split between brothers have gone. Private entrepreneurs want to become their own boss."

However, the current steel market situation grim, but the rigid demand still exists, some steel mills to improvement in the future market is disillusioned, also in the strong survival, generally do not stop production. Some enterprises think tough market situation will not last for a long time, to see who could stand at the end of the day. Tangshan is a enterprises have "terminally ill", but the boss still struggling, take out your wife's money, gold and silver soft hair wages, maintain production.

In fact, in some business owners would also like to be integrated, because related to bank loan, creditors, employees, capital integration costs is higher, the enterprise always wants to sell a good price when he was alive. Wang Shuli qianan region of yanshan iron and steel company chairman said: "the iron and steel enterprise competition has already begun, the worst companies are also running, has not yet entered the knockout stages, it's not yet time to integrate." Cui Qingyuan also thinks, the general manager of our company, if the current grim situation continue, there will be a group of poorly run steel mills production failure, then is the advantage of enterprise merger and reorganization of a good time.

Product upgrade to respect the market

Hebei iron and steel industry more than 10 years of rapid development, mainly to mid-range much-maligned product structure, restructuring shout for many years was a washout. The personage inside course of study thinks, if you don't respect the market rule, can backfire. At a time for higher "than the plate belt", the plate with excess production, building wire than profit.

Ji-jun song thinks, steel industry profits era, the high profit formed during the management of extensive ills have no time to solve it into small profit period, state-owned enterprises, private companies, mostly in the bottom of "survival". Transformation and upgrading the management level, just at this time that the extensive development of spelling a number from the only person, transition to rely on intensive development of the cost of remaining.

Hebei raw materials department, deputy director of the ministry hall xiu-jun Yang said: "the steel market structure is a pagoda type products, high-end products with high profit, small dosage, higher-end steel hundreds of thousands of yuan a ton, but the dosage of the world only a few tens of tons. Interior low profits, big dosage, private enterprise product structure to adapt to market needs." Shi Yuejiang Wu Anpu Yang iron and steel company general manager said: "in 2014 the company achieved a profit of RMB 1 billion, in addition to the cost is low, mainly with the varieties of products, the light." In hebei province development and reform commission deputy director Gao Junzhao argues that the high strength automobile panel only 3 million tons, the demand for high grade silicon steel demand for hundreds of thousands of tons. High-end product development is the direction, but should understand which products is to show enterprise strength, what product is to earn money.

Some private steel companies, said an official with the interlaced, such as the hills, do spoil the steel industry, it is difficult to across to the other industries, lack of money in his hand, transformation and upgrading. Shi Yuejiang said: "the product, what areas to extension to which industries transformation, the company has done research, have no detailed way, not don't want to turn, but can't find direction." JiNa Wei Kao increase steel company President assistant said: "goods should not be a single iron and steel enterprises, high precision of path do die."

Qianan British nott Ye Jinbao invested construction company chairman's first private steel mills in qianan region, in the iron and steel industry the most prosperous, anticipate environmental protection pressure and the market risk, transformation to the biological diagnostic reagent industry in 2006, has invested 400 million yuan, also didn't see benefits. He said: "the industry investment big, slow response, r&d spending accounts for three quarters, from research and development to the need for five years. 50 to get the approval of the varieties are behind 200 varieties. I put the steel to earn money all came in, this is a money, early know cycle is so long and so hard, did not have to turn this."

Mayor in qianan region shu-yun zhang said: "in 2014, the contribution of the steel industry tax 1 billion yuan, we feel the pain of the 'dominance of a steel, don't turn, slow turning are all dead. Transformation is a very long process, emerging industries will not happen overnight, entrepreneurs will not turn, do not want to turn, afraid to turn."