The Ministry of Industry and Information Technology is strictly forbidden to increase the inefficient production capacity of steel production capacity or become a focus of future resolution

After achieving excellent performance last year, in 2018, the steel industry's de-capacity goal has been upgraded. The Department of Raw Materials Industry of the Ministry of Industry and Information Technology recently issued a paper stressing that in 2018, we must continue to unswervingly do a good job in steel production capacity, and strive to complete the upper limit of the “13th Five-Year Plan” capacity in advance, and it is strictly forbidden to increase steel production capacity for any reason. Relevant data show that in 2017, China's steel industry achieved a total de-capacity of 115 million tons, which has exceeded the bottom line of steel production capacity of 100 million tons in five years. The target of the “13th Five-Year Plan” is 150 million tons, leaving tens of millions of tons. The scale. For the demolition of the steel industry in 2018, Xia Nong, inspector of the Industry and Development Department of the National Development and Reform Commission, said that this year the steel industry will focus on scientifically setting targets and tasks, prohibiting the addition of new production capacity, preventing the increase and decrease, preventing the resurgence of the strip steel, and persisting in resolving backwardness. The production capacity shall be withdrawn according to the regulations, and enterprises that do not meet the requirements shall be taken out, and the “negative list” shall be adopted for irregular inspection. In the settlement of the strip steel, the ministerial-level joint meeting will further clarify the responsibility system for the overall responsibility at the provincial level, establish a long-term reporting mechanism, and further study the punishment measures for violations. “Inefficient production capacity” or focus “At the same time as a series of measures such as prohibiting new production capacity, the de-capacity of the steel industry this year may fall on the resolution of 'inefficient production capacity'. Due to the increase in capacity in the past two years, Some of the excess capacity has been eliminated before. It is not easy to continue to de-capacity on this basis. Therefore, some 'inefficient production capacity' may become the key target this year.” Yesterday, there was an unwillingness to be named. The industry insiders told the "Securities Daily" reporter. This is also certified in the news released by the Ministry of Industry and Information Technology. In the introduction of the key work ideas of the Raw Materials Division of the Ministry of Industry and Information Technology, in 2018, it will “unswervingly resolve excess capacity. Guide and urge the relevant provinces to focus on the disposal of 'zombie' enterprises, remove inefficient production capacity, and shut down production capacity that does not meet layout planning. According to the reporter's understanding, just recently, the Department of Raw Materials Industry of the Ministry of Industry and Information Technology published a website titled "Deepening the Supply Side Structural Reform to Create High Quality of China's Steel Industry". An article on the development of a new situation. The article once again mentions “inefficient production capacity”: “Supervise the local authorities to deal with zombie enterprises as a starting point and unswervingly remove inefficient production capacity.” Although there is no clear definition of “inefficient production capacity”, it can be clearly defined. Yes, in the order of de-capacity, after the illegal production capacity such as “strip steel” was banned in the whole country last year, “inefficient production capacity” began to enter the vision of the competent authorities. In addition, in the above article, the Raw Materials Industry Division also mentioned that in 2018, we should continue to do a good job in layout optimization and fair market environment creation. The system research supports the supporting policies and measures for the development of electric furnace steel, and encourages the transformation of existing blast furnace-converter long-flow enterprises into electric furnace enterprises. Carry out the dynamic management of enterprises in the industries of steel and coking, and promote the standardized operation of enterprises. Strengthen the analysis and research on the signs and tendencies, and gather the strengths of all parties to jointly safeguard the fairness and stability of the steel market. At the same time, we must continue to promote the transformation and upgrading of the steel industry. From the supply side, we will focus on improving the quality of supply and promote the advancement of steel products to the middle and high end. Taking the smart manufacturing pilot demonstration as the starting point, we will gradually explore and form a new intelligent manufacturing model that can be promoted and replicated in the whole industry. Accelerate the popularization of advanced and applicable energy-saving and environmentally-friendly process technology and equipment, improve the green development level of the steel industry, and achieve sustainable development. In 2018, steel companies restarted restructuring? In addition to the measures and targets proposed by the Ministry of Industry and Information Technology, there are analysts speculated that in 2018, the merger and reorganization of steel companies will be reopened. The "Steel Industry Adjustment and Upgrade Plan (2016-2020)" promulgated at the end of 2016 clarifies that by 2020, the industrial concentration of the steel industry will reach 60%. The "Guiding Opinions on Promoting the Merging and Restructuring of Zombie Enterprises in the Iron and Steel Industry" issued by the State Council also pointed out that by 2025, 60%-70% of the steel production capacity of China's steel industry should be concentrated in about 10 large steel groups. In June 2016, Baosteel Group and Wuhan Iron and Steel Group announced the launch of strategic restructuring. From the perspective of Baowu's restructuring, in 2015, Baosteel Group's crude steel output was about 34.93 million tons, and WISCO's crude steel output was 25.77 million tons. The combined crude steel output will reach 60.7 million tons. Second only to ArcelorMittal's second largest steel group in the world. According to the data provided by Baosteel Co., Ltd., in terms of crude steel production, the new company after the merger of Baowu will rank third in the global listed steel enterprises, the third in terms of automobile board production capacity, and the first in terms of oriented silicon steel production capacity. The merger of Baowu Group played a leading role in demonstration. The National Development and Reform Commission once admitted that in the future, it will study relevant policy support financing, asset management companies to participate in the bankruptcy reorganization or exit the company's debt, and optimize the market environment for mergers and acquisitions, such as the merger entity The tax incentives for the three reductions and two exemptions and the corresponding financing policies will enhance the willingness to merge and restructure the main body. However, some insiders also said that large-scale restructuring may not be very fast, regional integration will occur, Northeast China, Yunguichuan and Beijing-Tianjin-Tangshan are all integrated hotspots. In fact, regional mergers and acquisitions have been Advancing. With the implementation of the debt-to-equity swap plan of Northeast Special Steel, the integration of steel enterprises in Northeast China is expected to take the lead, and the future integration of steel enterprises in Northeast China will not be ruled out by Angang. However, the integration schedule may be long, and it is difficult to see a large-scale integration tide in the second half of the year. It is worth noting that the merger and reorganization of the steel industry is still facing great resistance, which is not the same as other manufacturing industries. Iron and steel enterprises bear the responsibility of local taxation and employment, and the restructuring involves issues such as different types of enterprises, ownership, investment entities, and regional inter-governmental rights.

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