Shanxi Iron And Steel Industry Wants To Restructure Comprehensively, Shougang Group Or Integrated Enterprise

In May 20th, from the Shanxi provincial economic and Information Committee, news came out that the revised "Shanxi iron and steel industry integration plan" has completed the draft and submitted to the Shanxi provincial government.

If the above plan is approved and the time is drawn up according to the above plan, the integration and reorganization of Shanxi iron and steel industry will start in the summer of 2010.

According to the relevant person of the letter Committee, in the above plan, the main body of merger and reorganization of the iron and steel industry in 2010 was identified as Taiyuan iron and steel (Group) Co., Ltd. and the capital iron and Steel Group (hereinafter referred to as Taiyuan Steel and Shougang Group).

If approved, Shanxi province has nearly 60 million tons of steel production capacity, and the two major iron and steel groups will have the priority of integration.

"Separate food" capacity of 60 million tons

The plan for joint reorganization of iron and steel enterprises in Shanxi was first seen in the May 2009 plan for adjustment and revitalization of Shanxi iron and steel industry.

In the plan at that time, it was planned that by the end of 2011, the Shanxi iron and steel industry will be based on the large backbone enterprises and form the five iron and steel production bases of Taiyuan, Changzhi, Yuncheng, Linfen and Lvliang.

After a year's preparation, the Shanxi iron and steel industry reorganization and reorganization plan has been revised.

"The new scheme has been submitted to the provincial government for approval."

The provincial Commission for information and industry is responsible for the integrated planning of iron and steel industry.

The trial plan shows that the main body of iron and steel industry will be identified as Taiyuan Iron and Steel Group and two large iron and steel enterprises of Shougang.

"The existing steel production capacity in Shanxi is about 60 million tons. If the scheme is passed, the Taiyuan Iron and steel group may integrate 45 million tons of capacity, and Shougang will integrate 15 million tons of capacity."

The Shanxi Provincial Commission of letters told the Shanxi Youth Daily reporter.

He also stressed that "this is only a preliminary figure, and there is still uncertainty."

In May 21st, Zhu Fengliang, Secretary General of Shanxi iron and Steel Industry Association, commented on the plan in an interview with the Shanxi Youth Daily. "This means that after the integration, the steel enterprises in our province will become strong fist from the scattered five fingers, so the Shanxi iron and steel industry will have strong competitiveness."

The main body of integration is actively working.

"According to the new plan, TISCO intends to integrate the steel production capacity of the 4 cities of Taiyuan, Lvliang, Linfen and Yuncheng. Shougang Group is likely to integrate the steel production capacity of Changzhi, Datong and Jincheng 3 cities."

Provincial Commission for information, the person in charge told reporters.

In May 21st, in an interview with reporters, the head of Taiyuan Iron and Steel Group and Shougang Group responsible for development planning said, "we are actively working for this."

Meng Jun, director of the planning and Development Department of Taiyuan Iron and Steel Group, told reporters that "we have been actively preparing for the reorganization and integration of enterprises."

According to its introduction, Taiyuan Iron and Steel Group has selected 7 to 8 iron and steel enterprises with a capacity of more than one million tons in the province to give priority to capacity reengineering, including mejin steel, JOYOU steel, Zhongyang iron and steel, Antai iron and steel, Lvliang iron and steel project and so on.

Antai group, JOYOU group and Mei Jin steel are also actively negotiating with Taiyuan Iron and steel group. In an interview, all sides expressed their willingness to cooperate.

It is also known that Taiyuan Iron and steel company has initially completed an integrated plan, including product structure allocation, technology and equipment level, scale and environmental protection level.

Meng Jun told reporters, "several iron and steel enterprises have expressed preliminary cooperation intentions to TISCO, but no formal contacts have yet been made.

At present, the specific policy of restructuring our province has not yet been announced. We are waiting for the final confirmation of the plan. "

According to informed sources, Shougang also intends to restructure Datong's "coal and iron and steel", the two sides are still in contact.