Four advantages of iron and steel industry integration

Wang Yifang, chairman of Hebei Iron and Steel Group, which ranks first in steel production in China, told this newspaper recently that avoiding duplicate construction, eliminating backward production capacity, enhancing market voice and optimizing and integrating internal resources are the four major reasons for promoting the current merger and reorganization of the iron and steel industry.

Wang Yifang told reporters: "Now we all say that the domestic steel production capacity of 650 million or 700 million tons, but the NDRC only approved 300 million tons, other capacity is basically on their own, this is a typical duplicate construction, and the formation of large enterprise groups, to a certain extent, can solve this problem." According to him, Hebei Iron and Steel Group last year vetoed a hot-rolled coil production line with a total investment of 2 billion yuan. The rejection of the production line was not due to backward technology or inefficiency, but to the fact that Hebei Iron and Steel Group already has 60 20 million tons of hot plate production capacity. If there is no Hebei Iron and Steel Group, only from the point of view of Xuanhua Iron and Steel, it will certainly be the project, because Xuanhua Iron and Steel only building materials, profiles, no plate, and the product market is good.

Wang Yifang believes that the second advantage of the iron and steel industry's annexation and reorganization is to eliminate backward production capacity. Assuming that they are self-governing, sometimes it is impossible for enterprises to eliminate backward production capacity, because enterprises want to survive, and after the formation of large enterprise groups, the internal can formulate an orderly development plan, the elimination of backward production capacity is better coordinated.