"By adjusting the reorganization, the next few years the Chinese steel industry will occur 1-2 1 Yidun Ji ,3-4 50 million tons of iron and steel enterprises"

The Chinese government plans to change China's steel industry fragmentation, through mergers and acquisitions and restructuring the iron and steel industry, the degree of concentration and eventually the formation of several iron and steel giants.

        State-owned Assets Supervision and Administration Commission (SASAC) Planning Development Secretary Wang Qi in the "2008 China's steel M & A Forum", said that by 2010 the central enterprises number will be further reduced to 80-100 at home. Prior to this, the SASAC actively promote the central enterprise restructuring, its monitoring central enterprises The number has grown from the original 196 down to the current 149.

       "Iron and steel central enterprises of crude steel total at the national proportion is still relatively low, in the future should strive to make iron and steel central enterprises the country's total crude steel to increase the ratio to 25% or more." Wang Qi said.

        According to Wang Qi, at present the iron and steel central prices of crude steel totaled 71.55 million tons, accounting for crude steel percentage of 14.6%.

        According to China's "Iron and Steel Industry Development Policy", 2010, iron and steel smelting number of firms will be significantly reduced, the domestic top ten iron and steel enterprise group's steel production accounts for production ratio to 50%; in 2020 to reach over 70%. But by the end of 2007, this proportion is only 36.79%.

        "According to our judgments, by adjusting the restructuring of the next few years the Chinese steel industry will occur 1-2 1 Yidun Ji ,3-4 50 million tons of iron and steel enterprises," Wang Qi said, "in the reorganization process, the iron and steel central enterprises have the ability and conditions more to play its role. "

        Anshan Iron and Steel Group General Manager Zhang Xiaogang also believes that Chinese steel production has basically reached the demand level, will form a capacity slightly greater than the needs of the market situation, "Now is the implementation of the steel industry mergers and restructuring of the favorable opportunity."

        By the end of June 2007, China's largest steel group - Hebei Iron and Steel Group Co., Ltd. (hereinafter referred to as Hebei Iron and Steel Group) in Shijiazhuang was established. Hebei Iron and Steel Group Chairman Yi-Fang Wang said that it expects 2008 Hebei Iron and Steel Group Steel output a breakthrough will be 36 million tons.

        In June 2008, Baosteel Group, the restructuring of the Guangzhou Iron and Steel Group and the Shaoshan Steel Group, set up after the Guangdong Iron and Steel Group; in September, Wuhan Iron and Steel Group, reorganized the Liuzhou Iron and Steel Group was established in Guangxi Iron and Steel Group.

        However, property rights and personnel, has been China's steel industry restructuring two biggest obstacle. Not only the state-owned steel enterprises and private steel enterprises exists between the integration of obstacles, the state-owned steel enterprises can be divided into the central enterprises and local enterprises, the central and local interests find it difficult to integrate.

        Anshan and Benxi Iron and Steel merger, after many years, has been "dubious." Baosteel also has to enterprises extended an olive branch, including Maanshan Iron & Steel, Handan Iron and Steel, Baotou Steel, Jinan Iron and Steel and other large and medium sized Iron and Steel Group, but was in vain.

        Baoshan Iron and Steel Group, one insider noted that the current cross-re-main resistance is local protection. Baosteel acquisition Bayi Iron & Steel, Guangzhou Iron and Steel, Shaoguan Iron & Steel was able to successfully complete an important reason is that the local government's attitude clear, Baosteel has also made some concessions.

        Guangdong Iron & Steel Group, was established as an example. The reorganization, Guangdong Iron & Steel Group Co., Ltd. registered capital of 35.86 billion yuan, including Baoshan Iron and Steel invested 28.688 billion yuan, holding the proportion of 80%; Guangdong Province, the SASAC, the Guangzhou Municipal SASAC with Shaoguan Iron & Steel Group, Guangzhou Iron and Steel Group, the state-owned net assets invested 7.172 billion yuan, the total shareholding ratio of 20%, Guangzhou Iron and Steel and Shaoguan Iron & Steel each accounted for 10%.

        However, the Guangzhou Iron and Steel registered the election in Zhanjiang, thus will be able to drive the Zhanjiang economic, and revenue to product sales to be determined. As the iron and steel sales to have a "sales radius" principle, so tax revenue also most of the vesting in Guangdong.

        "Although the new Guangzhou Iron and Steel is still the state-owned institutions, but it belongs to the central, provincial and municipal levels inter-enterprise restructuring. This reorganization must address the place of registration, sales profit distribution, taxes, etc. problems. Baosteel not to tax, as long as the assets of It is a big breakthrough. "NDRC official told the" Financial "press.