The restructuring "freak" of Benxi Iron and Steel Co., Ltd. and Beijing Iron and Steel Co., Ltd. is actually the restructuring paving of Anshan Iron and Steel Co.
the restructuring "freak" of Benxi Iron and Steel Co., Ltd. and Beijing Iron and Steel Co., Ltd. is actually the restructuring paving of Anshan Iron and Steel Co., Ltd.
China Construction machinery information
Guide: the steel industry has once again staged a restructuring drama in which patients carry dead people. Recently, Benxi Iron and Steel Group (hereinafter referred to as Benxi Iron and steel) was forced to marry Beitai Iron and Steel Group (hereinafter referred to as Beitai Iron and steel) under the strong matching of the Liaoning provincial government. On July 8, it was learned from Benxi Iron and Steel Co., Ltd. that Benxi Iron and Steel Co., Ltd. and Beijing Iron and Steel Co., Ltd. are purchasing from the two companies
the steel industry once again staged a restructuring drama of "patients carrying the dead". Recently, Benxi Iron and Steel Group (hereinafter referred to as Benxi Iron and Steel Group) was "forced" to marry Beitai Iron and Steel Group (hereinafter referred to as Beitai Iron and Steel Group) under the strong matching of the Liaoning provincial government
on July 8, it was learned from Benxi steel that Benxi Steel and Beigang were integrating the procurement and sales channels of the two companies, "with a fast integration speed"
although the restructuring is a foregone conclusion, according to the internal management of Benxi Steel, the Liaoning provincial government is the driving force behind the rapid restructuring of Benxi Steel and Beigang. From the perspective of marketization, Benxi steel does not want to take over the "high debt" of Beigang
a senior manager of Benxi Iron and steel even complained privately that the new company established by Benxi Iron and steel after the reorganization of Beigang was "a freak"
Liaoning Province is eager to marry Beigang to Benxi Iron and Steel Co., Ltd. with good intentions. An insider close to the Liaoning provincial government said that the provincial government has "matched" Benxi Steel and Beigang. On the one hand, more than 90% of the blast furnaces of Beigang are facing elimination. On the other hand, it is conducive to Liaoning Province to obtain greater benefits when Angang restructures Benxi steel
Beigang was heavily indebted
before the restructuring, Beigang had been heavily indebted
"at present, Beigang has more than 20 billion yuan of liabilities, most of which are bank loans." The above Benxi Iron and steel insider said, "Beigang has successively reorganized bankrupt enterprises such as steel pipes, crankshafts, heavy-duty and chemical fertilizers according to the requirements of the local government, resettled a large number of employees, and repaid the huge debts owed by the original enterprises."
according to the information from Guancheng sensor precision high square station, Beigang group is "an enterprise group integrating Benxi Beiying iron and steel (Group) Co., Ltd., Liaoning North coal chemical (Group) Co., Ltd., Benxi North Machinery heavy truck Co., Ltd., Benxi Beitai Cast Pipe Co., Ltd." with an annual production capacity of 10million tons, it mainly produces building materials. In 2009, the group's operating revenue was 49 billion yuan, ranking sixth among the top 100 enterprises in Liaoning
although currently heavily indebted, Beigang has also had a good time
in the 1980s and 1990s, Beigang was just a small enterprise with an annual production capacity of less than 2million tons. By the end of the 1990s, Beigang began to expand, and in just twoorthree years, its asset scale expanded to the top few in Liaoning Province
but the rapid expansion has buried hidden dangers for Beigang
Xu Zhongbo, an expert in the iron and steel industry, told that due to the rapid expansion, the equity structure of Beigang is very complex and its liabilities are also very high. "Jianlong iron and steel originally negotiated the reorganization with Beigang, but Beigang was too complex, (Chairman of Jianlong group) Zhang Zhixiang retreated from difficulties."
in addition to the extremely high debt ratio, Beigang is also facing great pressure to eliminate backward enterprises
it is understood that Beigang has 11 blast furnaces, only one of which is more than 500 cubic meters, and the remaining 10 are all less than 400 cubic meters. At present, the state has explicitly required the elimination of backward production capacity below 400 cubic meters by the end of 2011, and blast furnaces with 500~600 cubic meters are also low-level production capacity restricted by the state
"with high debt and backward technology and equipment, Beigang can only choose to restructure." A person from the Sales Department of Beigang said with emotion
Benxi steel is unwilling to take over
more than one Benxi steel person told this newspaper that Benxi steel is unwilling to take over Beigang, and this restructuring is the will of the government
an employee of Benxi Iron and steel complained, "what's this called? Our own life is tight, and we need another debtor."
it is understood that the management of Benxi steel is not willing to restructure Beigang at this time. A senior official even reluctantly said that the newly listed Benxi Iron and steel group was "a freak" and could not see the synergistic effect of restructuring, which would even hinder the development of Benxi Iron and steel
according to public information, Benxi Iron and Steel Co., Ltd. is an enterprise affiliated to Liaoning Province and owns A-share listed company - Benxi Iron and steel plate Co., Ltd. At present, Benxi Steel has formed a steel production capacity of 11million tons, all products are plates, and the operating revenue in 2009 was 38.6 billion yuan
a major reason why Benxi Iron and Steel Co., Ltd. is unwilling to take over Beigang is that after the restructuring, Benxi Iron and Steel Co., Ltd. will not only bear the heavy responsibility of Beigang to eliminate backward production capacity, but also share the huge debt of Beigang
another reason is that although Benxi Iron and Steel Co., Ltd. has advanced technology and mining advantages, the operation of the company will inevitably be affected due to the sluggish plate market last year. In 2009, Benxi Iron and steel ranked four times lower than Beijing Iron and steel, and its total operating income ranked only 10th among the top 100 enterprises in Liaoning
despite the rise in profits in the first half of this year, the overall situation of the steel industry is still poor, and Benxi Steel has a sense of crisis
in fact, Benxi Steel and Beigang are located in the same area. In the context of the restructuring of the steel industry, the two sides can not help but "flirt". A few years ago, Benxi Iron and steel tried to take the initiative to restructure Beigang, but like Jianlong iron and steel, it "retreated despite difficulties"
a year-on-year decrease of 18.43%, the restructuring party itself has difficulties in development, the assets of the restructured party are worse, and even face the brink of bankruptcy. This combination is jokingly called "the patient carries the dead"
xuxiangchun, my steel Consulting Director, a steel industry consulting organization, said that the government sometimes gives a critically ill and weak enterprise to a slightly stronger enterprise. However, there are few successful examples of reorganization, and the final result is that weak enterprises bring down strong enterprises
Chongqing Iron and steel is a typical example
a person in charge of the planning department of Chongqing Iron and steel group once told that in 2000, Jinan tried to ensure the quality of large enterprises. The former Chongqing Iron and steel merged Chongqing special steel with a debt ratio of 145%, which is still dragged down
the abacus of Liaoning Province
but local governments have their own considerations
on June 8, at the merger and reorganization conference of Beigang and Benxi Iron and steel, the Liaoning provincial government believed that the product structure of Benxi Iron and Steel Co., Ltd. and Beigang iron and Steel Co., Ltd. has similarities and complementarities, and the merger and reorganization is complementary to each other's advantages, which is conducive to becoming bigger and stronger. Through merger and reorganization, an enterprise with a capacity of 20million tons and an operating income of more than 100 billion yuan will be formed
in fact, after Beigang is restructured by Benxi Steel, the ownership of the enterprise will change. The Liaoning provincial government will change the direct person of Beigang into an indirect person, thus reducing its own burden
in addition, resisting cross regional acquisitions by central enterprises and other steel enterprises, or raising chips when Benxi steel is restructured by enterprises outside Liaoning Province, is another calculation made by Liaoning Province
as we all know, Angang Steel will restructure Benxi steel
although the two sides have signed the restructuring agreement for many years, and there has been no substantive progress, Zhang Xiaogang, general manager of Angang, is still full of confidence, "Angang will restructure Benxi Steel sooner or later"
the Liaoning provincial government also showed its support for the restructuring of both sides
but a person close to Angang told this newspaper that after Liaoning Province tied Beigang and Benxi Steel together, "Angang executives were very unhappy" and thought that Liaoning Province was "very wrong" to do so
when Zhang Xiaogang was asked "after Angang restructured Benxi Steel, whether Beigang was included in Angang", Zhang Xiaogang's attitude became ambiguous
according to the above analysis, although Beigang has high debt and blocked development prospects, it cannot go bankrupt or let it die. After Beigang is included in Benxi Iron and Steel Co., Ltd., it means that it is difficult for Anshan Iron and Steel Co., Ltd. to get rid of this burden in the future restructuring. In this way, the Liaoning provincial government not only increases the bargaining chips, but also kicks the ball to Anshan Iron and Steel Co
in addition, after Beigang was restructured by Benxi Steel, how to deal with the backward production capacity is a matter of concern
insiders worry that the backward production capacity of Beigang is likely to be transformed into new and larger production capacity under the banner of "equal replacement"
this fear has shown signs of becoming a reality
with the establishment of new Benxi Iron and Steel Co., Ltd., the plan of "increasing the size of the company and suppressing the size of the company" was immediately approved. Liaoning Provincial Development and Reform Commission announced publicly that Beigang will build two 2850 cubic meters of blast furnaces. At the same time, the project of dismantling all blast furnaces below 450 cubic meters was approved to carry out preliminary work. The total investment of these projects is 2.4 billion yuan, and the construction period is two years