Yang Xueshan, deputy director of the Ministry of Industry and Information Technology, stated on the 15th that the Ministry of Industry and Information Technology is studying and enacting the "Regulations on Mergers and Reorganization of Iron and Steel Enterprises" in order to guide and regulate the major mergers and acquisitions of steel companies.
At the forum on the typical experience of the informatization and industrialization of the national steel industry held in Anshan, Liaoning Province, Yang Xueshan said that for a long time, due to factors such as the receptor system, mechanism, and policy lag, the merger and reorganization of Chinese steel companies has been slow. In the context of the international financial crisis and the overall oversupply of domestic steel production capacity, the optimization of the iron and steel industry organizational structure through mergers and reorganizations has become an imperative for the rejuvenation of the steel industry.
Yang Xueshan stated that in order to guide and standardize the major mergers and reorganizations of iron and steel enterprises, properly solve the problems in the process of mergers and reorganizations and accelerate the process of mergers and reorganizations of enterprises, the Ministry of Industry and Information Industry is in accordance with the â€œRegulations for the Adjustment and Revitalization of the Iron and Steel Industryâ€ in conjunction with relevant national laws and administrative regulations. Investigate and enact the "Regulations on Merger and Restructuring of Iron and Steel Enterprises", promote the development of ultra-large iron and steel enterprise groups, optimize the allocation of resources on a larger scale, and increase the competitiveness of domestic and international markets.
It is understood that there are many iron and steel production enterprises in China, and there are more than 500 crude steel production enterprises in the country, with an average size of less than 1 million tons. The top five companies account for only 28.5% of the country's total steel output, while the United States, the European Union The top four companies in developed countries, such as Japan and Japan, accounted for 60% or even more than 70% of the country's steel output. In the event of a downturn in the market, declining demand, and lack of consumer confidence, companies compete for each other's prices and profits are reduced, further reducing their ability to resist risks.
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