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Tangshan to steel production capacity push heavy integration Fengnan city steel enterprises relocation of new projects 38 billion

Tangshan Iron and Steel Association to the "Daily Economic News," told reporters that the relocation of the related issues have long been identified, are capacity replacement, joint reorganization will further eliminate production capacity, and promote industrial upgrading.
As a steel city, Tangshan Iron and Steel in the steel production capacity, industrial upgrading, hit a punch.
"Daily Economic News" reporter learned from the Fengnan area, as the benchmark for the Tangshan Iron and Steel Industry Tangshan Guofeng Iron and Steel Co., Ltd. (hereinafter referred to Guofeng Iron and Steel) and other cities and steel enterprises will be relocated in Tangshan Fengnan port economic development Area construction of 8 million tons of fine steel and related projects.
Hebei Provincial Government website information, Guofeng Iron and Steel will integrate nine urban iron and steel enterprises to form the Bohai Iron and Steel Company, relocated to the Bohai Sea shore, the city's existing 12 million tons of compressed capacity to 800 million tons.
Tangshan Iron and Steel Association to the "Daily Economic News," told reporters that the relocation of the related issues have long been identified, are capacity replacement, joint reorganization will further eliminate production capacity, and promote industrial upgrading.
However, in an iron and steel analysts view, the new plant will spend a lot of money, and the recession of the environment, most likely to allow enterprises to carry heavy debt, the enterprise is not necessarily a good thing.
It is noteworthy that Fengnan District government investment program, the project total investment estimates of 38 billion yuan, to be completed before the end of 2016 construction, 8 million tons of production capacity built within 4 years of production.
In this regard, the analyst told the "Daily Economic News" reporter said that on October 12, the National Development and Reform Commission issued a bond financing policy, perhaps the relocation can be used for reference.
Fengnan District city steel enterprises to move all
Hong Kong China Travel Service Group in the last year after the exit, Guofeng Iron and Steel in the layout, there has been a major adjustment.
October 10, Fengnan District People's Government released the official website of Tangshan Fengnan District People's Government on Tangshan Bohai Iron and Steel Co., Ltd. (hereinafter referred to as the Tangshan Bohai Iron and Steel) joint restructuring and relocation of urban steel plant project investment announcement. The notice mainly to the steel-based Guofeng a number of local urban iron and steel enterprises to implement the relocation, and in Fengnan Lingang Economic Development Zone to build 8 million tons of fine steel and related projects.
It is noteworthy that, as early as in 2008, Tangshan Bohai Iron and Steel that is driven by the establishment of government departments, from Tangshan Fengnan District of 12 private steel enterprises funded contributions. Among them, Guofeng Iron and Steel holdings accounted for 51%.
Tangshan Iron and Steel Association to the "Daily Economic News," told reporters that the integration is mainly through technological innovation, eliminate backward, the equivalent or reduction of the form of replacement, and on this basis to achieve the upgrading of equipment and products.
In the "second five" period, Tangshan iron and steel enterprises to speed up mergers and acquisitions, Tangshan Bohai Iron and Steel attempt to "joint stock" model to reorganize, the program in early 2012 formally approved by the Ministry of Industry.
"Daily Economic News" reporter also noted that the project was included in the approval of the State Council, "Hebei Iron and Steel Industry Structure Adjustment Program", is the iron and steel industry in Hebei Province structural adjustment of key projects.
Local industry sources told reporters that the planning and design of this project involves Fengnan existing capacity, that is, the existing Fengnan capacity to shut down, transferred to the coast to build a new project.
According to local planning, Tangshan Bohai Steel's new site is close to Bohai Bay, 40 kilometers away from Fengnan City, the project is divided into two phases, of which a capacity of 5 million tons by the end of 2016 completed. One of the project coordinators also said, "After the implementation of the first phase of the project, we first Fengnan four steel enterprises into one .After the adoption of anti-acquisition approach, phasing out the integration of Fengnan other enterprises . "
However, the relocation of the project progress is slow. 2016 at the beginning of the year, the State Securities research report said, Tangshan Bohai Steel due to financial constraints and the suspension of construction, based on the future economic judgment, the project built within 2 years probability is not.
In this regard, the analyst told the "Daily Economic News" reporter said that because the private background, various companies do not want to be integrated, and in recent years, the iron and steel industry in winter, but also so that the financial pressure of Steel increased.
Tangshan Iron and Steel Association in the view, in Baowu merger and supply side of the reform context, Fengnan District Government announced investment announcement, Tangshan Bohai steel relocation may be substantial breakthrough.
However, in the view of analysts, whether there is substantial progress, but also depends on the adequacy of construction funds, especially the exit of Hong Kong China Travel, so that the lack of steel Guofeng can rely on the owner.
38 billion investment or into constraints
October 13, in the "Daily Economic News" interview, Fengnan District government-related sources, the exit in Hong Kong, has affected the country's investment and financing capacity of HSBC Steel.
In May last year, Hong Kong China Travel Service Group announced that it intends to hold a 58.49% stake in Guofeng Steel transferred to Tangnan Fengnan District Fengnan Town Economic Development Corporation. The latter is a local state-owned enterprises, holding the remaining 41.51% stake in the state.
After the exit from the Hong Kong China Travel Service, has always wanted to do a large steel plate of Beijing Jianlong Heavy Industries had intended to Steel HSBC in the bag. Tangshan City, who said that because of the terms failed to reach an agreement, Jianlong took the matter ultimately failed to take place.
This also affected the Bohai Sea Tangshan Iron and Steel project forward. The source said that in Tangshan Bohai Iron and Steel project, Guofeng Iron and Steel is the main implementation side, Hong Kong China Travel exit, the Government hopes to introduce strategic investors.
Fengnan District investment announcement shows that the total investment estimate of 38 billion yuan, mainly on the steel and other cities Guofeng iron and steel enterprises to implement the relocation in Fengnan port economic development zone construction of 8 million tons of fine steel and related projects.
Fengnan District government also open out the conditions for cooperation, in addition to investment and construction capacity, but also requires the project to be completed before the end of 2016 construction, 8 million tons production capacity built within 4 years of production.
In this regard, the analyst told the "Daily Economic News," told reporters that some harsh conditions, the steel market boom is not fully warmer, even with corporate or institutional investment, the cost is difficult to recover in the short term.
The government officials said the current intention to cooperate with the government and enterprises are negotiating, but considering may affect the negotiation process, so the specific details are not disclosed.
However, in the introduction of strategic investors, Guofeng Iron and Steel and Fengnan District Government or have a certain grasp, because Guofeng Iron and Steel has begun to shut down part of the production capacity. July 9, Guofeng Steel North plant three 450 cubic meters of blast furnace, two 50 tons of converter and a 40-ton converter was completely removed. These equipment, is the country's steel plant north of the North all the "home."
Almost the same time, Guofeng Iron and Steel led the relocation of the city once again put on the agenda. August 23 this year, the Office of Hebei Provincial Government announced the restructuring of six major steel groups in Hebei Province relocation project capacity replacement program, Tangshan Bohai Steel in the column.
Tangshan Iron and Steel Association, the aforementioned person to the "Daily Economic News" reporter said that from the product structure, the HSBC Steel products have some "high not, not to low", the relocation of enterprises will have to promote the production capacity to promote the role.
It is noteworthy that, October 12, the National Development and Reform Commission issued the "promotion of private investment in the healthy development of a number of policy measures," proposed to expand direct financing channels for private enterprises to reduce financing costs, to support qualified private enterprises to issue bond financing.
In the view of analysts, Tangshan Bohai Iron and Steel to relocate the city, involving a number of private iron and steel enterprises, from the policy level, the new site construction funds, may not have to rely too much on banks, bonds can be resolved.

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