With the continuous development of China's economy, the steel industry, as a basic industry, plays a pivotal role in national construction. In recent years, under the guidance and support of national policies, China's iron and steel industry has continuously optimized its structure and improved production capacity, and a large number of excellent private steel mills have emerged. Among them, there is such a private steel mill, which is moving towards the goal of 50 million tons of production capacity!
The sword is 50 million tons
On January 27, 2024, Fang Wei, chairman of the board of directors of Liaoning Fangda Group, went to Jiujiang Iron and Steel to investigate and guide the work, went deep into the front line and the company's armed forces department to investigate, and presided over the meeting of Jiujiang Iron and Steel at the middle level of deputy and above. At the meeting, Fang Wei pointed outThe final development goal of the group's steel sector is to reach 50 million tons of production capacity, and it is a good opportunity to implement mergers and acquisitions when the market is down.
In Liaoning Fangda Group, it is only used for illustration.
He also stressed that the steel industry is now facing downward pressure, how many yearsNot only this year, but also in three or five years, we must be prepared for long-term and arduous struggle.
There is still a difference of 30 million tons
Liaoning Fangda Group Industry Co., Ltd. (hereinafter referred to as "Liaoning Fangda Group") is a cross-industry, cross-regional, diversified and large-scale enterprise group with strong international competitiveness with five major sectors of carbon, steel, medicine, commerce and aviation as the core.
In Liaoning Fangda Group, it is only used for illustration.
The steel industry is one of the core business sectors of Liaoning Fangda Group, with an annual output of 20 million tons of steel. Fangda Special Steel Technology Co., Ltd., Jiangxi Pinggang Industrial Co., Ltd., Sichuan Dazhou Iron and Steel Group Co., Ltd., is an important production base of spring flat steel, automotive leaf springs and free-cutting steel in China, a large-scale construction steel production base in China, and an important production base of high-quality high-strength seismic steel in western China. The main products of the steel sector include steel for auto parts, rebar, high-speed wire rod, small steel, medium and heavy plate, excellent special steel (including free-cutting steel) and other series, which are widely used in construction, bridges, automobiles, ships, equipment manufacturing and other fields.
Based on the above information, if the steel sector of Liaoning Fangda Group wants to achieve the goal of 50 million tons of steel production capacity, it needs to be based on the existing 2,000 tons of steel production capacityan increase of 30 million tons.
What is the concept of 30 million tons? According to the information on the official website of Shandong Iron and Steel, Shandong Iron and Steel adheres to the development strategy of "paying equal attention to quality and scale, coastal and inland, green and wisdom simultaneously", focuses on the transformation and upgrading of the iron and steel industry, and strives to build Rizhao Iron and Steel Quality Base, Laigang Iron and Steel Quality Steel Base, Linyi Lingang Advanced Special Steel Base, and Dezhou Yongfeng Short Process High-quality Building Materials BaseGradually form an annual output of more than 30 million tons of steel production scale。In other words, if Fang Wei wants to achieve the goal of 50 million tons, it is almost equivalent to eating another volume of Shandong Iron and Steel.
Hibernate standby
For illustrative purposes only.
According to the "Fangda Special Steel: China Audit China Certified Public Accountants (Special General Partnership) on the Second Round of Review and Inquiry Letter of Fangda Special Steel Technology Co., Ltd. on the Second Round of Review of the Application Documents for the Issuance of Convertible Corporate Bonds by Fangda Special Steel Technology Co., Ltd. to Unspecified Objects" released by Fangda Special Steel on September 13, 2023, the equity investment of high-quality enterprises in the steel industry is agreed in the Nanchang Huxu partnership agreement. Nanchang Huxu has been operating around the investment directionHe has participated in the mixed-ownership reform project of Angang Group and the equity acquisition of Nanjing GanglianAt present, it also continues to track other high-quality steel industry M&A projects (such as Shaanxi Iron and Steel Group's mixed-ownership reform project, Xining Special Steel's bankruptcy reorganization project, etc., a project in the western region, and a project in North China).
It is understood that the five listed companies won by Liaoning Fangda Group were all state-owned enterprises before. The original actual controller of Fangda Carbon is the Gansu Provincial Economic and Trade Commission, the original actual controller of Fangda Special Steel is the State-owned Assets Supervision and Administration Commission of Jiangxi Province, the original actual controller of Northeast Pharmaceutical and Zhongxing Commercial is the State-owned Assets Supervision and Administration Commission of Shenyang City, and the original actual controller of Fangda Chemical is the State-owned Assets Supervision and Administration Commission of Huludao City. Therefore, Fang Wei is good at state-owned enterprises and can be called a "state-owned enterprise hunter".
Although the above-mentioned Angang, Xining Special Steel and other last Fangda failed to do so, this fully proves itFang Wei is also always paying attention to the opportunities for acquisition, reorganization or mixed reform of steel enterprises. When the opportunity is ripe, it will be struck.
Aiming for the top five in the world
In Liaoning Fangda Group, it is only used for illustration.
Through the above Fang Wei's speech, he will merge and restructure when the market is down. If it is increased from the current 20 million tons to 50 million tons, it will not only greatly enhance the status of Liaoning Fangda Group in the steel industryAt the same time, it will also change the layout of China's and even the world's steel industry.
According to the 2022 crude steel production data, there are 27 Chinese steel companies in the top 50 of the world's major steel producing companies. Among the top 10 steel producing companies in the world, there are 6 Chinese steel companies, namely China Baowu, Anshan Iron and Steel Group, Shagang Group, Hegang Group, Jianlong Group, and Shougang Group.
If the production capacity of Liaoning Fangda Group reaches 50 million tons and is normally converted into output, it will rank 17th among steel enterprises in the world's crude steel output, surpassing Japan Steel Co., Ltd., Shagang Group, Hegang Group and many other steel enterprises, and leap into the world's top five.
In short, if Liaoning Fangda Group can achieve a production capacity of 50 million tons, it will help promote the transformation and upgrading of China's iron and steel industry, improve industrial concentration, and enhance international competitiveness. In the future development, Liaoning Fangda Group will continue to uphold the development concept of innovation, coordination, green, openness and sharing, and make greater contributions to the prosperity and development of China's iron and steel industry.