2021 is a year of great changes in the steel industry, which is full of keywords such as reorganization, merger, shutdown, bankruptcy, exit, replacement, elimination and so on. In this, reorganization seems to have a deep meaning.
At the beginning of 2021, the Ministry of Industry and Information Technology issued the "Guiding Opinions on Promoting the High-Quality Development of the Iron and Steel Industry", which clearly pointed out that by 2025, the industrial layout will be more reasonable and the level of industrial agglomeration development will be significantly improved. Create several world-wide super-large steel enterprise groups and professional first-class enterprises, and strive to achieve an industrial concentration rate of of the top five steel enterprises of 40%, and an industrial concentration rate of of the top 10 steel enterprises of 60%.
This year, Anshan Iron and Steel reorganized Benxi Iron and Steel and became the second largest steel company in China with a crude steel production capacity of 63 million tons; Yunnan Provincial State-owned Assets Supervision and Administration Commission, China Baowu and Kunming Iron and Steel Holdings signed an entrustment management agreement; the relocation An Jiujiang controls Tangshan Delong with a 51% ratio; mixed-ownership reform integrates 5 companies, and New Tiangang Materials Technology Group is established; Baowu plans to reorganize Shanxi Iron and Steel Co., Ltd. and will create a giant steel enterprise with 150 million tons; Puyang Iron and Steel completes the merger The equity restructuring of Xingshan Iron and Steel Co., Ltd. ...
The various scenes above constitute the reorganization drama of the steel industry this year. Each steel company relies on its own strength to compete against time in this giant "stage drama" in various forms. Strive for the protagonist. When all these fields come together, it is a magnificent development trend. In the process of connecting the steel development process throughout the year, it drives the giant ship of the steel industry to move forward across domains in the future!
Looking forward to 2022, the role of restructuring will not diminish, but will intensify. Among them, Hebei, Henan, Shandong and other provinces also have new plans for steel restructuring. The "Guiding Opinions on Promoting the High-Quality Development of the Steel Industry" issued by the Ministry of Industry and Information Technology has also been implemented since the beginning of this year, and will gradually develop and get better next year! After combining the current development situation and the steel industry development plans of various provinces and cities, the author makes a prediction for next year's restructuring drama!
1 Can Baowu complete the reorganization of Shandong Iron and Steel?
On July 14, 2021, Shandong Provincial State-owned Assets Supervision and Administration Commission announced that in order to implement Shandong Province’s steel industry plan and promote the optimization and structural adjustment of the steel industry layout, Shandong Provincial State-owned Assets Supervision and Administration Commission is planning with China Baowu to Shandong Iron and Steel Group Strategic restructuring matters. On the same day, Shandong Iron and Steel also released the above news. Shandong Iron and Steel stated that this matter may lead to changes in the company's controlling shareholder and actual controller.
100% equity of Jinan Iron and Steel Group held by Shandong Iron and Steel Group Co., Ltd. was transferred to Jinan Municipal People’s Government State-owned Assets Supervision and Administration Commission ; Baowu Water and Shandong Iron and Steel Co., Ltd. signed a strategic cooperation agreement; Laigang Group has Transferring 100% of the equity of Yinshan Section Steel to Shanxi Iron and Steel Group... The successive occurrences of the above events are also accumulating quantitative changes for Baowu to complete the reorganization of Shanxi Iron and Steel Group. Once the time is ripe, the reorganization of Shanxi Iron and Steel Group may be officially completed next year. .
2 Can the restructuring concept of Shougang and Hegang be realized and become the world's second largest steel company?
On November 24, 2021, The Hebei Provincial People's Government released the "14th Five-Year Plan for the Construction of a National Industrial Transformation and Upgrading Pilot Zone in Hebei Province", mentioned the content of building a very large steel group with global market competitiveness and voice , and clearly pointed out that it must rely on large steel companies such as Hegang Group and Shougang Group .
The signals released by government policies at the national and Hebei levels indicate that there will be a wave of restructuring and mergers among steel companies, both nationally and in Hebei Province, and will be initiated mainly by Hegang Group and Shougang Group. leader and leader. At the same time, the past two years are critical years for the "Three-Year Action Plan for the Cluster Development of the Steel Industry Chain in Hebei Province". Regional restructuring and mergers will also continue to accelerate until they enter the fast lane.
Shougang and Hegang are bound to be affected by the trend of policy and industry restructuring and mergers in the process of development, or they will take the opportunity to seek appropriate opportunities in the process of mergers and acquisitions to break through existing bottlenecks. Achieve leap-forward development of win-win cooperation!
According to the crude steel production rankings of the world's major steel companies in 2020, Shougang's output is 34 million tons and Hegang's output is 43.76 million tons. If the restructuring concept of "Shouhe Steel" can be realized, the total production capacity will exceed 77 million tons. In this way, it will surpass the 63 million tons production capacity of Anshan Iron and Steel (Anshan Iron and Steel Co., Ltd. and Benxi Iron and Steel Co., Ltd.) after reorganization, ranking third in the world (after China Baowu and AnselMittal), and second in China (only Second to China Baowu). In the future development, with the equipment and technology upgrade of "Shouhe Steel", new driving forces will burst out, and there is a high probability that it will surpass AnselMittal (crude steel output in 2020: 78.46 million tons). Become the second largest steel group in the world!
3 Steel pipe industry entrusted management, can it catalyze the reorganization of Baowu Baotou Steel ?
Baosteel Co., Ltd. issued an announcement on August 21, 2021. Based on consensus, the company and Baosteel Co., Ltd. plan to cooperate in steel pipes and work together to optimize resource allocation, achieve business focus, and improve professional operation levels. After friendly negotiation, the two parties signed the "Steel Pipe Industry Cooperation Framework Agreement". The scope of cooperation covers the comprehensive cooperation in the steel pipe sector of Baosteel Co., Ltd. and Baotou Iron and Steel Co., Ltd.
html On September 3, Baosteel Co., Ltd., a listed company under China Baowu, and Baotou Steel Co., Ltd., a listed company under Baotou Steel Group, signed a central-regional pairing cooperation agreement and a steel pipe industry entrustment management agreement in Baotou.
Is the cooperation between Baosteel and Baotou Steel in the field of steel pipes a "prelude" to further cooperation and integration, stimulating a deeper "chemical reaction"? we will also wait and see. Baosteel and Baotou Steel also made attempts to integrate, but ultimately failed. However, driven by national policies and the acceleration of industry restructuring, the two parties are also very likely to reorganize and integrate in 2022.
4 Jiujiang, Delong or participate in Tangshan regional steel integration?
In August 2021, Tangshan Delong Iron and Steel Co., Ltd. and Qian'an Jiujiang Wire Co., Ltd. reached a strategic cooperation agreement. This cooperation will enable both parties to form a strong alliance in the field of wire rod and welding material production and sales. It will also lay a solid foundation for both parties to further participate in the integration of steel resources in Tangshan region and enhance the company's voice and competitiveness in the regional market.
On July 13, 2020, Hebei Provincial Development and Reform Commission issued the "Three-Year Action Plan for the Cluster Development of the Steel Industry Chain in Hebei Province", emphasizing that it is necessary to focus on promoting cross-regional mergers and reorganizations of private steel companies, and strive to establish 1-2 world-class large-scale steel companies. Groups, 3-5 large domestically influential groups as support, and 8-10 new, high-quality, specialized enterprise groups.
And 2022 will be the second year of the three-year action plan and also a critical year. Jiujiang and Delong, as private steel companies in the Tangshan area, actively participate in mergers and reorganizations, which coincides with the requirements of the three-year plan and the original intention of the cooperation between the two parties!
5 Anyang Iron and Steel ’s mixed ownership reform will drive the consolidation trend of Henan Iron and Steel?
On November 23, 2021, Anyang Iron and Steel's mixed ownership reform plan has been finalized. At present, the mixed ownership reform of Anyang Iron and Steel Group still needs to carry out auditing, evaluation and public listing and trading in property rights trading venues and other related work.Up to now, on the "stage" of Anyang Steel mixed ownership, there have been sparks with three steel companies: Shagang Group, Fangda Group , and Delong Group . As for the final outcome of the mixed ownership reform of Anyang Iron and Steel Group Whoever introduces new capital in addition to the three steel companies, we will wait and see what happens!
Currently, various works are continuing to advance, and Anyang Iron and Steel’s mixed-ownership reform may also produce real results in 2022.
In the process of promoting the mixed reform of Anyang Iron and Steel, on December 9, 2021, The General Office of the Henan Provincial People's Government issued the "Notice on Issuing the Implementation Plan for the Transformation and Upgrading of the Steel Industry in Henan Province during the "14th Five-Year Plan"", which focused on Reorganization matters were emphasized. It is required to follow the principles of marketization and rule of law, encourage advantaged enterprises to vigorously implement cross-regional and cross-ownership mergers and reorganizations, establish large-scale joint steel groups, and increase industrial concentration. Encourage steel companies to use capital as a link to implement substantive strategic reorganization, promote production capacity reduction and equipment large-scale; implement differentiated production capacity replacement support policies for those that implement substantive mergers and reorganizations.
Based on this observation, the author observes that the overall development direction of the steel industry in Henan Province in 2022 will also focus on restructuring. As a result, under the influence of the mixed reform of Anyang Steel, a wave of restructuring will also be triggered in the province!
6 Shagang Shares or complete the acquisition of 100% equity of Suzhou Qingfeng?
The restructuring transaction of Shagang Co., Ltd. (002075.SZ), which has been planned for five years and intends to include overseas IDC assets, has not been approved by the China Securities Regulatory Commission. The fate of Global Switch, Europe's largest data center operator, acquired by its parent company Shagang Group for more than 60 billion yuan, has attracted attention again.
On July 7, 2021, the Listed Company Mergers, Acquisitions and Reorganization Committee of the China Securities Regulatory Commission issued an announcement that Shagang Co., Ltd.’s major restructuring transaction to acquire 100% of Suzhou Qingfeng’s equity was not approved because of “the failure to fully disclose the overseas policy risks and core competition of the subject assets.” strength, and there is great uncertainty in profitability.”
Shagang Co., Ltd. announced on August 9, 2021 that it had terminated the acquisition of 100% equity of Suzhou Qingfeng and the private placement of funds. The company stated that this termination of asset restructuring will not have an adverse impact on production, operations and financial conditions. The company will seize policy opportunities, build and improve the special steel industry chain, and achieve high-quality transformation and development of the steel business.
Looking at the above information, it is sad that the reorganization plan that has been planned for five years has been "terminated". However, five years of planning time also allows us to still have hope for the development of restructuring matters! Although Shagang Group has repeatedly affected its reorganization due to insufficient information disclosure, I believe that in the future development, Shagang Group will definitely change its thinking and focus on avoiding this problem. Once its own problems are resolved, the reorganization will definitely be possible to restart in 2022, and the reorganization may be achieved next year!
7 Jianlong Group will set sail again, or show the flag of restructuring?
Zhang Zhixiang, chairman and president of Jianlong Group, proposed his own development path when meeting with the visiting Baowu Group: through holding 50 million tons + participating in 50 million tons of steel scale, then adding 42 million tons of existing steel pattern, Jianlong has aimed to become a huge steel empire of 142 million tons!
Throughout the development history of Jianlong Group, there are recombinant genes. Fushun New Steel Co., Ltd. was restructured in 2005; Shanxi Jianlong was established after the reorganization of the original Co., Ltd. Haixin Steel Co., Ltd. in 2015; Jianlong Beiman Special Steel Co., Ltd. was reorganized in 2016; in 2020, Jianlong Group hosted the Co., Ltd. Steel and established Luliang Jianlong...
Although the process of reorganization and integration was not smooth sailing, through the scientific management of Jianlong Group, the company has basically regained its glory.It can be seen that Jianlong Group has accumulated rich experience in the process of promoting restructuring.
In 2018, Jianlong Group formulated the core content of the five-year strategic development plan (2018~2022) to continue to promote the enterprise to become bigger and stronger. The first of these is to achieve the goal of "wholly owned + controlled steel production capacity reaching 50 million tons" in 2022.
2022 is the last year for the implementation of the five-year strategic plan. For Jianlong Group, it is bound to step up the pace of production capacity expansion next year, and the most effective measure is to reorganize and merge steel companies in the industry!
8 Rizhao Steel "stirs" the Shandong steel territory?
It is reported that after Rizhao Iron and Steel Holding Group Co., Ltd. acquired Guangfu Group and Chuanyang Group, the total iron-making production capacity was 5.69 million tons and the steel-making production capacity was 6.66 million tons, it acquired Zibo Qilin Fushan Iron and Steel Co., Ltd. and Shandong Longsheng The Iron and Steel Co., Ltd. has a total iron-making production capacity of 2.2425 million tons and a steel-making production capacity of 2.4 million tons. It has received a total of 7.9325 million tons of iron-making production capacity and 9.06 million tons of steel-making production capacity from the four steel companies in the province, all of which will be used for Rizhao Iron and Steel Holding Group's reduction in replacement. Rizhao Lanshan District will build three new 3000m³ blast furnaces (with an iron-making capacity of 7.5 million tons), two 300-ton converters (with a steel-making capacity of 6 million tons), and two 120-ton converters (with a steel-making capacity of 2.7 million tons), which are planned to be completed in 2022.
On September 18, 2021, Rizhao Steel Holding Group Co., Ltd. ("Rizhao Steel") acquired the equity of Minmetals Yingkou Medium Plate Co., Ltd. ("Minmetals Yingkou") is being announced. After the transaction is completed, Rizhao Steel will hold It has 100% equity of Minmetals Yingkou. Minmetals Yingkou's medium and thick plate crude steel output is about 7 million tons.
Rizhao Steel's crude steel output in 2020 will be 14.4 million tons. Based on the above, Rizhao Steel's production capacity may exceed 30 million tons, becoming the representative and integrator of Shandong private steel companies.
"Shandong Province Advanced Steel Manufacturing Industrial Base Plan (2018-2025)" pointed out that the total steel production capacity will be strictly controlled and strive to use about five years to gradually bring the steel companies and steel production capacity currently scattered in 12 cities to Japan - The coastal advanced steel manufacturing industrial base and the Lai-Taiwan inland high-quality steel production base have been transferred. By 2022, steel companies in Jinan, Zibo , Liaocheng , Binzhou and other transmission channel cities will withdraw more than 70% of their production capacity, and Qingdao will The proportion of steel production capacity in coastal areas such as Dongjiakou, Rizhao Lanshan, and Linyi Lingang has increased to more than 50%; by 2025, the steel production capacity in transmission channel cities and areas along the Jiaoji Railway should be reduced, and the steel production capacity in coastal areas The proportion increased to more than 70%.
From this point of view, the steel production capacity in Shandong Province will also be further concentrated. In this process, Rizhao Steel may take advantage of the optimal geographical location to merge and reorganize the province's steel production capacity, affecting the entire steel industry in Shandong Province. development; at the same time, it may also participate in cross-regional integration in the form of production capacity transfer in the national overall industry restructuring and mergers.
9 Fangda Group continues to reorganize to achieve strong horsepower?
The rise and growth of Fangwei and Fangda Group are closely related to the continued mergers, acquisitions and reorganizations.
Fang Wei’s fortune is almost legendary. Fang Wei was born in Shenyang, the capital of Liaoning Province, in 1973. After graduating from middle school, he went to work as an apprentice in steel. After completing his studies, he founded a nut factory with his father. At that time, a steel factory used an iron ore to pay off its debt. A few years later, the price of iron ore soared sharply, and the Fang family made their first pot of gold.
In 2002, Fushun A small local carbon factory was on the verge of bankruptcy, and the Fang family bought it. This is the first merger and acquisition implemented by Fangwei. This merger has made this carbon factory the largest graphite electrode company in the country and the third largest in the world in 20 years, and has the world's most advanced large-size electrode production equipment.
Since then, Fang Wei’s mergers and acquisitions have become out of control.
In 2003, Fangwei successfully reorganized Fushun Laihe Mining and began to enter the resources industry. It turned losses into profits that year, and Fangda Group launched a green and safe mine development plan.
In 2004, Shenyang Coking Gas Co., Ltd. and Chengdu Rongguang Carbon were reorganized. The industry expanded out of Liaoning and deployed in the southwest, increasing its carbon business.
In 2005, the combined fertilizer carbon industry was reorganized, and the industrial tentacles extended to the southeast region. The carbon sector entered the stage of large-scale development.
In 2006, Lanzhou Hailong New Materials was reorganized and renamed Fangda Carbon.
In 2007, Ulanhot Steel was reorganized and began to integrate the steel industry.
In addition to the reorganization of Fangda Carbon, the most concerning thing in the market is still the reorganization of the steel industry.
In 2009, Fangda Group reorganized the original Nanchang Iron and Steel Co., Ltd. and changed its name to Jiangxi Xida Iron and Steel Group Co., Ltd., which indirectly controls Fangda Special Steel Co., Ltd. Jiangxi Fangda Iron and Steel Group is China's largest spring flat steel and automotive leaf spring manufacturer.
In 2012, Jiangxi Pingang Steel was reorganized, which is one of the largest production bases of construction steel in China.
Fangda Group has also reorganized Fangda Chemical and China Steel Group Jiangcheng Carbon Fiber Co., Ltd. .
In recent years, Fangda Group has participated in the restructuring of Northern Heavy Industries and used it to acquire Zhongxing Commercial for about 530 million yuan. Participated in the mixed reform of Northeast Pharmaceutical and ultimately controlled more than 50% of its equity.
On December 8, 2021, HNA announced that the actual control rights of the operation and management of the main aviation business have been officially transferred to the strategic investor Fangda Group, which will ensure aviation safety and achieve the healthy development of the main aviation business. *ST HNA (formerly HNA Holdings , 600221.SH) controlling shareholder changed to Fangda Airlines, and Fang Wei became the actual controller of the listed company.
Based on the above situation, Fangda Group has accumulated a lot of experience in restructuring in recent years and has made too many successful attempts! Moreover, the steel field reorganization or cross-sector reorganization that Fangda Group participates in always makes us "brightly surprised"! In 2022, in the new year, Fangda Group will continue to develop in related fields, continue to promote merger attempts, and may even give us new surprises!
In 2022, restructuring and mergers, mixed-ownership reform, and cross-field investment will be the focus of development. And this is also a benign way for various steel companies to cross, interconnect, and break through! In mid-2021, the "Implementation Measures for Capacity Replacement in the Steel Industry" issued by the Ministry of Industry and Information Technology will be implemented from June 1 this year, which explicitly encourages corporate mergers and reorganizations. The method states that the replacement ratio in key areas for air pollution prevention and control shall not be less than 1.5:1, and the replacement ratio in other areas shall not be less than 1.25:1. In order to encourage corporate mergers and reorganizations and increase industrial concentration, when the compliant production capacity obtained after completing substantive mergers and reorganizations (realizing actual control and completing industrial and commercial changes such as legal persons or legal person affiliations, equity relations, articles of association) is used for project construction, The replacement ratio in key areas for air pollution prevention and control can be no less than 1.25:1, and the replacement ratio in other areas can be no less than 1.1:1. From this point of view, for companies that implement mergers and reorganizations, the proportion of production capacity replacement is obviously tilted, reflecting the encouragement of mergers and reorganizations of steel companies.
Throughout the development of China's steel industry, there have long been problems such as numerous production companies, low concentration, and serious homogeneous operations, which have affected the high-quality development of the industry. Steel companies even once experienced difficulties in production and operation and serious losses. . In the face of such problems, the reorganization and mergers among steel companies seem to be a good medicine. With a devastating trend, many reorganization waves have been launched in China's steel industry.As for the development of China's steel industry, the current restructuring progress and progress are obviously not enough, and it still needs to be continued in a long-term and in-depth manner to further enhance the concentration of China's steel industry, thereby further enhancing the overall strength of China's steel Competitiveness, and fully promote the green and high-quality development of the steel industry!
Which reorganization are you most looking forward to completing, or what other ideas do you have? Welcome to leave a message and comment!
