Dragons coming out of North China steel or shrinking steel industry have to deal with the Anglo-American way
[Global Times reported that in the United States, Britain Takaishi mission special correspondent special correspondent Ji Twins Lugo] Foreign media have reported that China plans to create the South, Severstal Group, but the message has not been related to any company and China's official response. In fact, the steel industry has been frequent internal mergers and joint activities, "giant" in the multi-state-owned steel enterprises precedent. Europe and the United States and the Japanese steel industry in the elimination of excess capacity, promote industrial upgrading process, but also repeated acquisitions.
China to build the "giant" iron and steel enterprises?
Bloomberg August 1 quoted unnamed sources as saying the Chinese government plans to merge Baosteel Group, Wuhan Iron and Steel Group, to create the South Iron and Steel Group, plans to merge Shougang Group, River Steel Group, created Severstal Group. Consolidation process will advance to the capacity, segmentation and rationalize steel and non-steel assets. In this regard, the Chinese government and relevant responsible persons did not respond.
United States, "Wall Street Journal," said the Chinese government will cut steel production capacity in five years, 150 million tons, this year's target of 45 million tons, but the reduction process is not smooth. Bloomberg said, China plans to merge to form a global, can rival Arcelor Mittal Steel Group's "giant" on the scale iron and steel enterprises. Arcelor Mittal Steel Group is currently the world's largest steel company, in 2006 by the Luxembourg and Dutch steel company Arcelor Mittal Steel merged.
United States, "Pittsburgh Post Gazette" mentioned in the report entitled 2 "to create a giant" of the steel companies in the United States complain that the Chinese steel industry overcapacity, the Chinese domestic steel industry is on a new round of restructuring, and India and Germany the steel giant is also talking about the possibility of merging, the future of the steel industry may enter the "giant era."
Anglo-American steel industry to deal with shrinking each way
The late 1990s, low-cost Russia, South Korea and Brazil's steel imports greatly impact on the US steel industry, nearly half of US steel plant declared bankruptcy. In 2003, the US International Steel Group announced the acquisition of Bethlehem Steel Corporation, USA Nucor also has acquired Birmingham Steel Company, Slovakia Iron and Steel Company. Meanwhile, Russia Iron and Steel Group in 2004 formally enter the US market, in just five years, the United States has acquired Rouge Industries, Inc., the US integrated mills and the like. After ten years of continuous adjustment, the United States formed the United States Steel Corporation, Nucor, the International Iron and Steel Company and Severstal Group, led by the four Iron and Steel Group. Today, the US steel industry's market share of the top four, the total has exceeded 70%. Whether in scale, or technical innovation capability, compared with before the merger and reorganization, have been improved significantly.
As the birthplace of the Industrial Revolution, the British steel industry in recent years, shrinking in size from 320,000 employees in 1971 and the annual output of 29 million tons, fell in 2015 only about 30,000 people and about 12 million tons output, only global 0.7% of steel supply. Unlike the Chinese, the British insist on the development of the steel industry, must be resolved by way of privatization; and through acquisitions and other forms of foreign investment, including foreign companies such as Tata Steel, was also starting to build giant British-style iron and steel industry.
However, high manufacturing costs, weak demand and the impact of currency and other factors, so that Tata Steel had to give up in the UK to build the steel industry giant plans to sell its plants in the UK, which also means a new round of European steel companies merge start.
Japanese steel industry "three pillars"
Chinese steel companies such as achieving the merger, its size will exceed Japan's major steel giant. "Japanese Economic News" said that Japan is now the top three steel companies, the largest NSSC Group in 2012 by the merger of Nippon Steel and Sumitomo Metal, followed by Japan Steel Holding (JFE) Group is the 2002 in Japan was made by the second, the third largest steel enterprises NKK and Kawasaki steel merged. Ranked third in the Kobe Steel and NSSC also form alliances. February 2016, NSSC announced merger of Japan's Nisshin Steel ranked fourth in 2017 years.
Japanese steel companies merged with each other, develop into the current "three pillars" pattern, it is under the guidance of the industrial layout adjustment of government to deal with the problem of overcapacity carried out. The mid-1970s, Japanese steel companies profit margin peaked and began to fall. Government-led corporate layoffs, shutting down, bankruptcy, mergers and other reductions in their production capacity, formed nearly 30 years, the pattern of Nippon Steel and other five steel prices side by side.
In the new century, in response to the rise of European, American and Chinese steel enterprises, the Japanese steel enterprises through mergers and joint again to form a "super oligarchs." Japanese steel industry oligarchs, objectively reduce excess capacity, under the control of the premise of the total amount of blast furnace equipment and technology updates. Oligopolistic firms by way of coordination and cooperation to ensure a favorable position in the international competition.