Five year standard production minus 30% Baosteel planning to seek "non-steel"

From the local to the central, from the business to the government, in the middle of the month of 2010, the same thing worked out Twelve-Five planning (2011 ~2015 Development Plan).　　The domestic steel leading Baosteel group was the first step, announced its "2010-2015-year Development Plan" (hereinafter referred to as "the outline") on June 25, 2010.　　However, Baosteel's "platform" is a surprise, "to 2012 crude steel production capacity reached 50 million tons, 2015 reached more than 66 million tons," this group of data than the 2007 Baosteel proposed 80 million tons, over billion tons of shrinkage of more than 30%. "This platform is not simple. "A steel industry researcher in Guangzhou gave Baosteel a highly appraised new outline," the serious excess of domestic steel production capacity is an indisputable fact, Baosteel in the homogenization of competition and high production costs, has put the scale effect to the extreme, this time to put down the head face, reduce production capacity goals is very sensible; For the first time in the national industrial Restructuring of the active capture of opportunities, new materials, energy, new industries is a bright spot.　　"is the horizontal merger over?" Born in the same year as reform and opening-up, Baosteel Group, which was built in 1978, was given the mission of "big steel" from the outset.　　According to data, Baosteel Group 2009 steel production reached 38 million tons, slightly behind the newly merged Hebei Steel, and in the previous more than 20 years, Baosteel has been the domestic steel industry is a veritable leader.　　For a long time, China's iron and steel industry concentration has been far lower than developed countries, resulting in uneven technical level of the steel industry, high energy consumption and low output value problems have long plagued the benign development of the industry.　　At the end of 2009, the top 5 steel enterprises in China accounted for less than 29% of the national total, while the top 4 steel companies in the United States accounted for more than 60%, and Japan's top 4 steel mills accounted for more than 75%.　　The restructuring of the steel industry naturally falls on the leading steel companies such as Baosteel. Baosteel began its "merger and reorganization" of the domestic steel industry since 1998, when Baosteel began its joint reorganization with Shang Steel and Mei Steel.　　2006, the reorganization of Xinjiang Bayi Steel, 2008 and Canton Steel, Shaoguan steel reorganization, the establishment of Guangdong Canton Railway, 2009 acquisition of Ningbo Iron and steel, along the way, Baosteel's "big steel" walk quite smoothly. "Before the introduction of the new platform, Baosteel's strategy has been to merge and reorganize, the size of priority." Although the new "platform" still proposes to develop in this way, but the speed has obviously slowed down.　　Said Guangzhou researcher.　　According to the June 25, 2010 Baosteel Group announced the "2010-2015-year development plan", 2012 crude steel production reached 50 million tons, 2015 reached 66 million tons.　　Whether from the time of completion or from the completion of the goal, Baosteel's new "outline" has clearly lowered the target. 2009, the Ministry of Industry developed the "Iron and steel sector revitalization plan" andLater, "Iron and steel industry joint restructuring guidance" are clearly stated: strive to form in 2011 with Baosteel Group, Angang Benxi Steel Group, Wisco group, such as several annual output capacity of more than 50 million tons, has a strong international competitiveness of the special large-scale enterprises.　　In the earlier 2007, Baosteel Group chairman Lejiang publicly said Baosteel to reach 80 million tons in 2012 capacity targets, 2015 capacity of billion tons.　　Baosteel's new platform aims to cut its target by 34% and 37%, respectively, from 2007. "In the context of severe overcapacity, intensified competition for homogenization, high resource costs and rising trade protectionism, China's steel industry will enter a slow development phase that is compatible with the low profit era." "Baosteel's new outline" so analysis of domestic steel industry status and prospects.　　Baosteel Group Chairman Lejiang also said that the reason to adjust the capacity planning objectives, because after the international financial crisis, Baosteel more calm, more cautious, must act according to economic rules. "At present, Baosteel's analysis is accurate," he said. In this case, Baosteel's survival of the horizontal expansion in the short term has come to the extreme, must slow down. At the same time, through the recent years of domestic steel industry mergers and acquisitions also can see that Baosteel is facing a lot of frustration.　　The Guangzhou researchers believe that the rise in trade protectionism referred to in Baosteel's new "outline" actually refers to the reorganization of Hebei Steel and Shandong Steel.　　2008, Hebei Province will be the main iron and steel enterprises jointly restructured, forming Hebei Iron and Steel Group, the purpose is to resist from Baosteel and other leading enterprises of the "invasion", this law by the Shandong province to follow, Shandong Iron and Steel Group was born.　　After the reorganization of Hebei Iron and steel group total output can exceed 40 million tons, surpass Baosteel ranked first in the country. "The steel industry is a capital, labor-intensive industry, the local tax and employment is a big pull, and steel is the lifeblood of the economy, a wide range of uses, especially large-scale infrastructure and real estate, in the production and sales process, involved in a lot of interests, the horizontal merger of Baosteel will touch many people's interests.　　Guangdong, a small steel mills boss told reporters that this is "China's national conditions." Obedient while look "from the steel board to the national overcapacity blacklist began, the steel industry's only integration model is horizontal mergers." "The Guangzhou researcher thinks Baosteel's target is more constrained by the international and domestic macro-environment and the current situation of the steel industry," the country will not approve any new capacity projects in the next few years, now it has formed the situation of local protectionism and the confrontation between the leading enterprises, the policy has been exhausted and the rest needs to be regulated by the market.　　"Market regulation" in the researcher's mouth refers to the market adjustment of domestic steel prices in recent months.　　June 4, 2010, Baosteel announced the July steel factory prices, a substantial price reduction was wiped flat 2010 years ago, 6 months of cumulative gains, this is known as "Baosteel under the ruthless hand, to ensure pricing power." "Beyond market expectations!" Yang Baofeng, chief researcher of Orient Securities and steel industry, believes that, although steel prices are down inevitably,But Baosteel's July product price policy was a surprise. "Mainly from the spot market pressure, Baosteel's July product price policy fully reflects the recent spot price adjustment and downstream industries, especially the home appliance auto industry orders weakened, through a substantial price reduction, Baosteel will fully guarantee its main product orders and relative to other domestic steel products price competitiveness." "A third party researcher in the steel industry also believes that Baosteel's sharp cut in steel prices is due to the consolidation of domestic steel industry pricing power," through price adjustment, forcing the domestic steel industry to reduce production, long pain is not as short as pain, Baosteel can carry, but small and medium-sized steel mills cannot. "" Baosteel, Anshan iron and steel after the price, we have no living space, the same losses, we can not hold. "said Guangdong small steel Mills boss told reporters, such as Hebei Iron and steel, such as 1+1 combined mergers and their small steel mills do not make any difference, we are all dry each," in the steel cold winter, still endure, Baosteel appears to have lowered the reorganization target, actually obedient while look, to force local protectionism surrender. "　　"Teng hand to the new Bureau in Baosteel's new" outline ", to enter the emerging industries is a bright.　　According to the "outline": In the next few years, Baosteel Group will be in the national Industrial restructuring actively capture the opportunity to discover the rapid growth of business areas, incubation and cultivation of new materials, energy, new industries. "This is different from Baosteel's previous strategy of steel-oriented, moderately vertical diversification, and Baosteel has begun to look for new profit growth points in a low profit situation."　　The Guangzhou researcher said that the previous diversification of Baosteel was centred around the steel industry. According to the information, Baosteel's main business layout is divided into iron and steel industry, resource development, steel Extension processing industry, technology services, finance, production services, coal chemical industry.　　This kind of industrial layout is called "1+6" by Baosteel. Baosteel has invested in Zhanjiang port and Yantai Port by controlling the shareholding, reducing its logistics cost and ensuring its capacity, and holding a stake in the shipping group, Shanghai-Hangzhou high Speed railway, in fact, maintaining customer relations; "The Guangzhou researcher believes that Baosteel's strategic layout, in addition to the financial industry, all around the iron and steel main business," the development of the Japanese enterprise group, which also and Baosteel from the beginning of the cooperation with Nippon. Now, Baosteel's strategic layout has been completed, the domestic steel enterprises, Baosteel's layout is the most complete, coastal economically developed areas are all delineated by Baosteel. "The researcher believes that Baosteel is now considering the transformation of the mode of growth," it owns Baosteel, Army Day Steel, China's 3 listed companies, the main business in the overall composition of the industry accounted for the decline, rather than steel business profit is significantly higher than the main, which can make Baosteel in the main industrial low profit or even negative profit environment production, can also be a transverse expansion of its iron and steel industry blood transfusion. According to the information, in Baosteel's business composition, the non-steel business since 2005, continued to rise, the 2009 Baosteel stake in the investment income of 9.5300 million yuan, accounting for the annual net profit of more than One-sixth.　　Baosteel Group is also a large shareholder of China's Tai Bao, through the two-tier market, Baosteel Group in the fourth quarter of 2009 is more than 1 billion yuan. "On the one hand, reduce the merger and reorganization objectives, on the other hand, through the layout of emerging industries to continue to deepen Baosteel's strategic layout, Baosteel is not a steel enterprise, but a financial holding group." Said Guangzhou researcher.