Since the 18th National Congress of the Communist Party of China, under the strong leadership of the Party Central Committee with Comrade Xi Jinping as the core, the steel industry has actively and deeply promoted the supply-side structural reform. A large number of super-large steel companies have emerged. The number of steel companies in my country (only referring to mainland China) listed in the world’s top 500 has increased from 7 in 2012 to 12, and the number of 10 million-ton steel companies has increased from 17 in 2012. By 2021, the number of 24 companies has also curbed the trend of industrial concentration from 2012 to 2015. The proportion of steel output of the top 10 steel companies has risen from 34.2% in 2015 to 41.5%. The competitiveness and anti-risk ability have been significantly improved.
It can be said that the past 10 years are the 10 years in which my country’s iron and steel industry has promoted the world’s largest strategic and market-oriented reorganization. It has been 10 years of vigorously promoting high-quality development, building a world-class steel enterprise, and profoundly changing the development pattern of the world’s steel industry.
Speed up the strategic reorganization and build a new industrial pattern with “South Baowu and Bei Angang” as the main framework
To promote supply-side structural reform, we must start from the production side, focusing on promoting the effective resolution of overcapacity, promoting industrial optimization and restructuring, reducing enterprise costs, developing strategic emerging industries and modern service industries, increasing the supply of public goods and services, and improving the supply structure. Adaptability and flexibility to changing needs.
——On January 18, 2016, Xi Jinping emphasized in his speech at the seminar on the study and implementation of the spirit of the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China.
Since 2012, as my country’s economic development has entered a new normal, economic growth has shifted from high-speed to medium-high-speed, and my country has bid farewell to the period of rapid industrial development. , especially the intensified homogeneous competition among enterprises, which led to a large loss in the whole industry in 2015, and the industrial concentration did not rise but fell. %. Improving industrial concentration has become a key issue that must be solved for my country’s iron and steel industry to move towards high-quality development.
At that time, a series of policies to promote cross-regional and cross-ownership reorganization of the industry were introduced. Among them, the “Guiding Opinions on Promoting the Merger, Restructuring and Disposing of Zombie Enterprises in the Iron and Steel Industry” issued by the State Council on September 19, 2016 became the iron and steel industry to resolve excess capacity and structure. The top-level design scheme of optimization and adjustment.
In the past 10 years, the wave of cross-regional and cross-ownership mergers and acquisitions in the steel industry has swept across China. In particular, the strategic reorganization that is scaled on the basis of specialization, aims to reduce homogeneous competition, and is characterized by asset transfer has been accelerated. The new industrial structure with the main framework of “South Baowu and Bei Anshan Iron and Steel” sounded the clarion call for the determination to build a world-class iron and steel enterprise and realize the goal of making China’s iron and steel industry both big and strong.
One hundred million tons of Baowu was born, and the target in 2025 is 200 million tons
On the evening of December 23, 2020, at the commemoration of the 130th anniversary of China Baowu, Chen Derong, Secretary of the Party Committee and Chairman of China Baowu, officially announced: “One hundred million tons of Baowu, today’s dream comes true!” China Baowu’s annual steel output exceeded 1 100 million tons, officially entered the era of “100 million tons of Baowu”, the world’s largest crude steel output, has become another important milestone in the history of the development of China’s iron and steel industry, and the world’s iron and steel industry has also opened a new page. He Wenbo, Secretary of the Party Committee and Executive Chairman of China Iron and Steel Association, praised in his speech: “This is a glorious moment for China Baowu, and it is also a glorious testimony of China Steel. We have never been so close, more confident, and more confident than today. It is more capable of realizing the goal of a steel powerhouse.”
The reorganization of Baowu is undoubtedly an important benchmark for the reorganization of steel enterprises in the past 10 years. On September 22, 2016, with the approval of the State Council, the former Baosteel Group and the former Wuhan Iron and Steel Group implemented a joint reorganization, and on December 1st of that year, China Baowu Iron and Steel Group Co., Ltd. was established and officially embarked on the journey of building a world-class steel enterprise. . On February 14, 2017, Baosteel Co., Ltd. absorbed and merged Wuhan Iron and Steel Co., Ltd. through share swap at a ratio of 0.56:1. Baosteel Co., Ltd. has established an efficient management model of “one headquarters with multiple bases” through professional integration and coordinated business operations, and has formed four major steel manufacturing bases in Shanghai Baoshan, Wuhan Qingshan, Zhanjiang Dongshan and Nanjing Meishan. This model also laid the foundation for the subsequent integration of central and local state-owned enterprises between China Baowu and Maanshan Iron and Steel and Taiyuan Iron and Steel.
On September 19, 2019, China Baowu reorganized the Maanshan Iron and Steel Group, and China Baowu held a 51% stake in Maanshan Iron and Steel. Today, Maanshan Iron & Steel is positioned to build a specialized platform company for excellent and special long products in China and a high-quality excellent and special steel base in China, and explores the management model of “one headquarters and multiple bases”. The company has four major steel production bases.
On August 21, 2020, China Baowu reorganized TISCO Group; on December 23 of the same year, the controlling shareholder of TISCO was changed to China Baowu, and the annual production capacity of China Baowu Steel officially exceeded 100 million tons. On January 1, 2021, TISCO was entrusted with the management of Baosteel Desheng Stainless Steel Co., Ltd. and Ningbo Baoxin Stainless Steel Co., Ltd. under China Baowu; on January 15 of the same year, China Baowu Shanxi Headquarters was unveiled. Taiyuan Iron & Steel has since become the flagship platform company for the integrated operation of China’s Baowu stainless steel industry.
On November 13 and 25, 2020, Bayi Steel, a subsidiary of China Baowu, announced that its holding subsidiary Xinjiang Tianshan Iron and Steel United Co., Ltd. plans to acquire 100% equity of Xinxing Cast Pipe Xinjiang Co., Ltd. and Xinjiang Yili Iron and Steel Co., Ltd. 77.125% equity. So far, Bayi Iron and Steel has formed three steel production bases in the Xinjiang region, the capital Urumqi, the northern Xinjiang Ili, and the southern Xinjiang Bazhou, with a total steel production capacity exceeding 10 million tons.
On December 5, 2020, China Baowu Group Zhongnan Iron and Steel Co., Ltd. was unveiled in Guangzhou. After China Baowu became its actual controller on December 3 of that year, Chongqing Iron and Steel was entrusted to the management of Zhongnan Iron and Steel. Zhongnan Iron and Steel built three steel bases of Shaoshan Iron and Steel, Esteel and Chongqing Iron and Steel, becoming China Baowu in the central and southern regions. regional platform company.
With the acquisition of high-quality assets, China Baowu’s market competitiveness has been continuously improved, and five major holding subsidiaries, Baosteel Co., Ltd., Zhongnan Iron and Steel, Maanshan Iron and Steel Group, Taiyuan Iron and Steel Group, and Xinjiang Bayan Iron and Steel Group have been formally established in the main steel business. Steel output in 2021 reached 120 million tons.
Since the “14th Five-Year Plan”, China’s Baowu joint restructuring efforts have continued to increase, and strive to reach 200 million tons of crude steel by 2025. On February 1, 2021, China Baowu and Yunnan Province signed a cooperation agreement to promote the joint reorganization of China Baowu and Kunshan Iron and Steel; Wu plans to implement a strategic reorganization of Shangang Group; on April 24, 2022, China Baowu reorganized Xingang Group, and Jiangxi Guokong transferred 51% of Xingang’s equity to China Baowu for free.
Saddle’s long-cherished wish for reorganization has finally been fulfilled, and the “7531” blueprint is gradually approaching
On August 20, 2021, the Ansteel Group reorganization conference of Bengang Group was held, announcing that the reorganization of Angang was officially launched. Liaoning State-owned Assets Supervision and Administration Commission transferred its 51% equity of Bengang Group to Angang Group for free. Holding subsidiary; On October 15, 2021, Ansteel Group Benxi Iron and Steel Group Co., Ltd. was unveiled, the substantive integration was officially opened, and Anben’s long-cherished wish for restructuring was finally achieved.
As early as 2005, Anshan Iron and Steel and Benxi Iron and Steel established the Anben Iron and Steel Reorganization Promotion Committee, but no substantial progress has been made for many years. He Wenbo, who attended the reorganization conference, pointed out in an interview with reporters from China Metallurgical News and other media that Ansteel’s reorganization of Benxi Iron and Steel is a general trend and a historical inevitability. It is of great strategic significance and far-reaching influence to become a first-class enterprise and improve the national strategic resource guarantee capability.
After the reorganization of Anben, the annual production capacity of crude steel has reached 63 million tons, and the operating income has reached 300 billion yuan, ranking second in China and third in the world.
On June 23, 2022, Linggang Co., Ltd. announced that the company received a notice from its controlling shareholder, Linggang Group, on June 22 that Angang Group was planning to reorganize with Linggang Group. If Lingshan Iron and Steel with a production capacity of 6 million tons is successfully reorganized this time, the annual production capacity of Anshan Iron and Steel will reach 69 million tons, which is far from the “7531” (70 million tons of crude steel, 50 million tons of iron) that it previously proposed in the “14th Five-Year Plan” The strategic goal of 70 million tons of crude steel production capacity in concentrate, 300 billion yuan operating income, and 10 billion yuan profit) is only one step away, which will further consolidate Ansteel Group’s position in the northern steel industry pattern, Ansteel’s industry The right to speak and dominance will also continue to increase.
CITIC Special Steel successfully listed, building the world’s largest special steel enterprise
The high-quality development path of CITIC Pacific Special Steel Group (hereinafter referred to as CITIC Special Steel) has attracted wide attention from the industry. At the beginning of 2017, Qingdao Special Steel and CITIC Group realized a strategic reorganization. Qingdao Special Steel was transferred to CITIC Group for free, and the equity delivery was completed on May 15, 2017. Qingdao Special Steel officially entered CITIC Special Steel. In June 2018, CITIC Special Steel acquired Valin Tin Steel (now renamed Jingjiang Special Steel) through regional restructuring and integration. In August 2019, CITIC Special Steel successfully acquired Zhejiang Glos Seamless Steel Tube Company (now renamed Zhejiang Steel Pipe). In January 2019, CITIC Special Steel officially launched the overall listing project. According to the reorganization draft, Daye Special Steel plans to issue shares to purchase 86.50% of the shares of Xingcheng Special Steel (the target company) held by Taifu Investment and others. On October 11, 2019, the reorganization, renaming and listing ceremony of CITIC Special Steel was held, and Daye Special Steel was officially renamed CITIC Special Steel. On January 19, 2021, CITIC Special Steel successfully won a 40% stake in Shanghai Electric Group Steel Pipe Co., Ltd., successfully acquired a 20.4% stake in Tianjin Steel Pipe Manufacturing Co., Ltd. (hereinafter referred to as Tianguan), and was fully responsible for its production, operation and management.
After restructuring the overall listing and taking a stake in Tianguan, CITIC Special Steel has formed a strategic layout of “coastal + riverside”, with an annual steel production capacity of over 14 million tons, becoming the world’s largest and most comprehensive specialized steel production enterprise. A veritable global leader in special steel.
Market-oriented restructuring efforts have increased, and private steel enterprises have become the main force in the ten-year restructuring
We must uphold and improve the basic socialist economic system, unswervingly consolidate and develop the public sector of the economy, unswervingly encourage, support, and guide the development of the non-public sector of the economy, and promote all types of ownership to complement each other, promote each other, and develop together.
——On November 23, 2015, Xi Jinping pointed out during the twenty-eighth collective study of the Political Bureau of the Eighteenth Central Committee
Since the Third Plenary Session of the 18th Central Committee of the Communist Party of China in 2013 clearly put forward the idea of ”actively developing the mixed-ownership economy”, the mixed-ownership reform in the steel industry has been accelerated, and private steel enterprises have become more motivated to participate in restructuring. The restructuring efforts have been continuously increased, and important progress has been made in cross-regional and cross-ownership mergers and acquisitions.
In the past 10 years, Jianlong Group has been wonderful. On September 25, 2015, Jianlong reorganized Haixin Group. Shanxi Jianlong, which was established with Haixin Group as the main body, came back to life in less than a year, and made a profit of nearly 100 million yuan in 2016. On September 29, 2017, Jianlong’s bankruptcy reorganization plan for three companies including Beiman Special Steel, a subsidiary of the former Northeast Special Steel Group, came into effect. After the reorganization, Jianlong Beiman Special Steel turned losses in March 2018. for profit. On November 20, 2017, Jianlong restarted Acheng Iron and Steel, and it took only 54 days to resume production of the original Asteel, which had been suspended for three years. On June 6, 2018, Shanxi Jianlong successfully acquired the East Steel project in Malaysia, making this overseas steel company profitable for more than two years by the end of the year. On December 25, 2018, Jianlong completed the bankruptcy reorganization of Xilin Steel. In February 2019, Jianlong obtained a controlling stake in Baotou Steel Wanteng and fully resumed production in just 7 months. On June 17, 2020, Jianlong took Shanxi Jianlong as the main body to manage Wenshui Haiwei Steel. On June 29, Lvliang Jianlong Industrial Co., Ltd. was registered and fully resumed production on October 17. Today, Jianlong’s steel output in 2021 will reach 36.71 million tons, ranking among the top 5 steel companies in China. The scale goal of “double 50 million tons” (wholly-owned and holding steel production capacity is 50 million tons, and shareholding steel production capacity is 50 million tons) is increasingly becoming Reality.
On September 12, 2017, Fushun Special Steel announced that Jincheng Shazhou plans to hold 43% of the shares of the restructured Northeast Special Steel Group, and Bengang Steel Sheets holds 10% of the shares. Jincheng Shazhou indirectly holds 38.22% of Fushun Special Steel through Northeast Special Steel Group. Therefore, Shagang successfully reorganized the Northeast Special Steel Group. Using advanced management experience, Shagang has brought this century-old state-owned enterprise back to a healthy development track in just two years, and further strengthened Shagang’s special steel blocks. It is reported that Shagang currently integrates 10 million tons of special steel in the main 40 million tons of iron and steel industry to form Shagang Northeast Special Steel Group, which has four bases in Fushun, Dalian, Huaigang and Anyang Yongxing, and will focus on building a superior special steel brand.
On November 10, 2012, the signing ceremony of Pinggang’s equity reorganization was held in Pingxiang City, Jiangxi Province, which marked the success of Fangda Iron and Steel Group’s acquisition of Pingshan Iron and Steel (including Ping’an Iron and Steel and Jiujiang Iron and Steel subsidiaries). On May 25, 2020, Dazhou Iron and Steel completed the judicial reorganization process, and Fangda Iron and Steel Group became the largest shareholder of Dazhou Iron and Steel in accordance with laws and regulations; “Relocation and Transformation Development Cooperation Agreement”, the two parties intend to speed up the implementation of Dazhou Iron and Steel’s off-site relocation and transformation development project in phases. So far, Fangda Steel has become a large-scale iron and steel complex with an annual output of 20 million tons of steel, with its three controlling steel companies, Fangda Special Steel, Pinggang Co., Ltd., and Dazhou Iron and Steel.
On September 28, 2014, Jingye Group officially took over Wulanhot Iron and Steel Co., Ltd. (hereinafter referred to as Wugang), which was on the verge of cessation of production due to operational difficulties. With an investment of 2 billion yuan, it took only 6 years to increase the annual production capacity of Wugang from 500,000 tons. To 2 million tons, let the “prairie pearl” regain its vitality. On March 9, 2020, Jingye Group officially acquired British Steel, the second largest steel company in the UK, and became a multinational enterprise group, demonstrating the competitiveness and influence of Chinese steel to the world steel industry. On March 28 and September 11, 2020, Jingye Group acquired Yunnan Yongchang Iron and Steel Company (registered and established Yunnan Jingye Iron and Steel Co., Ltd. on April 9 of that year) and Guangdong Taidu Iron and Steel Company (renamed Guangdong Jingye Iron and Steel Company), and actively Develop markets in Southwest and South China, and radiate corporate influence to Southeast Asia.
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In the past 10 years, private steel enterprises have actively participated in reorganization and mixed-ownership reform, which has greatly improved the “small and scattered” situation of my country’s iron and steel industry, and has become a new force participating in this round of reorganization. A number of super-large private steel enterprises are rising.
Reform and innovation seek breakthroughs, China Iron and Steel is striding forward to the goal of being both big and strong
In the face of the new round of global growth, only the reformers will advance, only the innovators will be strong, and only the reformers and innovators will win. We must show the courage of “dare to be the first in the world”, be determined to reform, stimulate innovation, actively explore new paths and new models that suit our own development needs, and constantly seek new growth points and driving forces.
——On November 9, 2014, Xi Jinping emphasized in his speech at the APEC Business Leaders Summit
Looking back at the reorganization cases in the past 10 years, it is not difficult to find that the reorganization of steel enterprises since the 18th National Congress of the Communist Party of China is all accompanied by the reform and innovation of the system and mechanism that restricted mergers and reorganizations in the past, and the reorganized enterprises have also undergone vigorous integration and integration. Correcting the previous problem of “jointness but not integration”, this round of mergers and reorganization not only increases the industrial concentration, but also greatly enhances the competitiveness of the reorganized enterprises.
In June 2022, China Baowu officially transformed from a state-owned capital investment company pilot enterprise to a state-owned capital investment company, which is a concentrated expression of this feature. Since the 18th National Congress of the Communist Party of China, China Baowu has continued to promote the optimization and structural adjustment of state-owned capital, and the process of its promotion of merger and reorganization is undoubtedly a process of innovation and breaking through the constraints of the system and mechanism. Within the huge group, China Baowu actively builds the “one base and five yuan” industrial system, optimizes the allocation of the main iron and steel business resources of its subsidiaries, and vigorously promotes the internal The professional integration of diversified industries has embarked on a path of Chinese Baowu characteristics from association to integration to integration. Completing the successful transformation from an industrial group to a state-owned capital investment company will give the company the wings to build 200 million tons of Baowu and become a world-class great enterprise.
During the reorganization process of Ansteel and Benxi Iron and Steel, the SASAC and all parties launched a set of reform “combinations” of six measures, including promoting China Chengtong and China’s new capital to participate in the diversification reform of Anshan Iron and Steel Co., Ltd., and Liaoning Province’s free plan. Transfer 51% shares of Benxi Iron and Steel to Anshan Iron and Steel, promote the debt restructuring of Benxi Iron and Steel in an orderly manner, actively introduce outstanding private enterprises to participate in the mixed ownership reform of Benxi Iron and Steel, promote the integrated operation of the steel sector and iron ore sector, and simultaneously establish a market-oriented mechanism work plan, etc. Building a comprehensive reform of central and local state-owned enterprises has set an example.
In addition, the major breakthrough in mixed ownership reform is also a distinctive feature of the restructuring of the steel industry in the past 10 years. Among them, Delong Iron and Steel’s judicial restructuring of Bohai Iron and Steel is the most striking. On January 31, 2019, the Tianjin Higher People’s Court and the Tianjin Second Intermediate People’s Court ruled to approve the reorganization plan, and the judicial reorganization of Bogang Group has officially entered the implementation stage. In February 2019, Delong Group invested 20 billion yuan to participate in the mixed-ownership reform, controlled the steel sector of Bogang Group, and received more than 40,000 employees from 18 enterprises. The reorganized Xintiangang Group officially set sail. Delong Iron and Steel Group, which participated in the mixed-ownership reform of Bogang Group through judicial reorganization, has a steel production capacity of 30 million tons, ranking among the top 10 steel companies in China. By the end of 2021, the per capita income of employees of Xintian Steel Group has increased by 45.69% compared with that before the mixed-ownership reform. In 2021, the total industrial output value of the group will exceed the 110 billion yuan mark for the first time, and the operating income will reach 138.3 billion yuan, the best level since the mixed-ownership reform.
This round of mergers and acquisitions of steel companies is not only the largest, but also creates a number of world-class super-large steel companies. On August 3, 2022, the 2022 Fortune Global 500 list was released, China Baowu, Hegang, Angang, Tsingshan, Shagang, Shougang, Shandong, Hanggang, Jianlong, Jingye, Hunan Iron and Steel, Germany 12 Chinese steel companies of Longgang are on the list, among which Hanggang, Hunan Iron and Steel and Delong Iron and Steel entered the list for the first time. From 2012 when only 7 steel companies (Baosteel, Hegang, Shougang, Wuhan Iron and Steel, Shagang, Angang, Xinxing Jihua) were on the list, to 12 steel companies on the list this year, it shows that since the 18th National Congress of the Communist Party of my country Significant progress has been made in regional and cross-ownership mergers and acquisitions. In the 2022 Fortune Global 500 list, China Baowu entered the top 50 for the first time after entering the top 100 for the first time last year, ranking 44th, jumping 28 places from last year, and continuing to maintain the top spot among global steel companies; Ansteel Group This year’s ranking has risen the fastest, jumping 183 places from last year, ranking 217th; the number of private steel companies on the list has increased from 1 seat in 2012 to 4 seats.
The wind is blowing and the clouds are flying, and the steel industry is about to enter a new round of major restructuring and integration. On July 29, 2022, at the Fourth General Meeting of the Sixth Steel Association, He Wenbo believed in his keynote speech that the industry downturn in 2015 created the birth of Baowu, and the industry downturn in 2022 should also bring new With a wave of industry mergers and reorganizations, the industrial concentration of China’s steel industry is likely to increase rapidly.
On February 7, 2022, the “Guiding Opinions on Promoting the High-Quality Development of the Iron and Steel Industry” (hereinafter referred to as the “Opinions”) issued by the Ministry of Industry and Information Technology and other three departments clarified that leading enterprises in the industry are encouraged to implement mergers and reorganizations to build a number of world-class super-large iron and steel enterprises. group. Relying on the dominant enterprises in the industry, we will cultivate 1 or 2 professional pilot enterprises in the fields of stainless steel, special steel, seamless steel pipe, cast pipe and so on. Encourage iron and steel enterprises to merge and reorganize across regions and ownerships, change the “small and scattered” situation of the iron and steel industry in some areas, and enhance the endogenous power of enterprise development.
Although the “Opinions” does not mention the planning target of the top 10 steel companies’ concentration ratio reaching 60%, the steel industry will unswervingly move towards the goal of becoming bigger and stronger. We believe that under the background of “double control” and “double carbon” goals of production capacity and output, and promoting high-quality development, the large-scale cross-regional and cross-ownership merger and reorganization of the iron and steel industry driven by the market will be further accelerated. The goal of making the industry both big and strong is striding forward, contributing iron and steel power to building a modern socialist country in an all-round way.