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Jingye's group acquires the mystery of British Steel Group: 25,000 British people have to keep their jobs. After the successive failures of potential buyer transaction negotiations in India and Turkey, the British Steel Group reached a preliminary acquisition agreement with Jingye's group.The Jingye's group has exchanged contracts with the dedicated group and reached an agreement to acquire some of the steel assets of the UK. Under the terms of the agreement, a dedicated acquisition is subject to regulatory approval and certain employee consultation procedures. Because in accordance with the transaction agreement, Jingye Group will also acquire the French branch of British Steel. France requires Chinese companies to guarantee the continuous supply of steel for the manufacture of French TGV high-speed rail to France after the completion of the acquisition.
Jinye's group plans to invest £1.2 billion over the next 10 years to upgrade plants and machinery, improve the environmental performance of new companies, and improve energy efficiency to make the company's operations more competitive and sustainable, and will increase its productivity by more than 10%, from 2.5 million tons per year to more than 3 million tons, while reducing production costs. After the dedication of the acquisition, it faced the adjustment of British steel from bankruptcy to normal operations. Jingye Group needs to find out the management problems of the original enterprises, upgrade and optimize management, technology and equipment, and at the same time inject funds to revitalize the cash flow of the enterprises to ensure that the production and operation of the enterprises are on a normal track.The Jinye's group plans to increase the production of the Scunthorpe steel plant, and also promised to invest heavily in the plant, including upgrading major production facilities.
In addition, the dedicated group also guarantees that the Scunthorpe steel plant will mainly produce high-end products in the global steel market, so it will not compete with the steel factories that are dedicated to China.
But about form China's experts opinion, the analysis of the industry observers to the Economic Observer, it is difficult to support such an acquisition in Europe's very limited incremental market, the cost burden of British steel companies, including labor costs. Constrained by EU market rules, the UK cannot protect its domestic steel industry by increasing tariffs on imported steel, which has also contributed to the further decline in the competitiveness of the UK steel industry. Rising energy prices and business taxes, as well as steel from China's more price advantage, have made the UK steel industry thinner. As China has a huge influence in the global steel market, Dedicated Group can also help British Steel Group's products find more profitable sales channels. As a Chinese private enterprise with a scale of 11 million tons, Jingye Steel is in the middle of the steel industry. However, it is difficult to effectively break through the expansion of competition in China. The acquisition of British steel should be a breakthrough based on its promotion of international competitiveness. direction.But the situation does not seem to be optimistic. The latter believes that, first of all, the strength of trade unions in overseas markets is strong. In fact, the UK and the European Union are buying steel mills, and apart from the high investment in fixed assets, the first problem is likely to be a heavy employee burden. The development of the old industrial countries has come to an end, there is no increase in demand, only fluctuations, ups and downs. An industry observer said to the Economic Observer on November 15 that "in addition, the UK's economy is relatively limited in global influence, and the country's steel is relatively weak."
Jinye's group plans to invest £1.2 billion over the next 10 years to upgrade plants and machinery, improve the environmental performance of new companies, and improve energy efficiency to make the company's operations more competitive and sustainable, and will increase its productivity by more than 10%, from 2.5 million tons per year to more than 3 million tons, while reducing production costs. After the dedication of the acquisition, it faced the adjustment of British steel from bankruptcy to normal operations. Jingye Group needs to find out the management problems of the original enterprises, upgrade and optimize management, technology and equipment, and at the same time inject funds to revitalize the cash flow of the enterprises to ensure that the production and operation of the enterprises are on a normal track.The Jinye's group plans to increase the production of the Scunthorpe steel plant, and also promised to invest heavily in the plant, including upgrading major production facilities.
In addition, the dedicated group also guarantees that the Scunthorpe steel plant will mainly produce high-end products in the global steel market, so it will not compete with the steel factories that are dedicated to China.
But about form China's experts opinion, the analysis of the industry observers to the Economic Observer, it is difficult to support such an acquisition in Europe's very limited incremental market, the cost burden of British steel companies, including labor costs. Constrained by EU market rules, the UK cannot protect its domestic steel industry by increasing tariffs on imported steel, which has also contributed to the further decline in the competitiveness of the UK steel industry. Rising energy prices and business taxes, as well as steel from China's more price advantage, have made the UK steel industry thinner. As China has a huge influence in the global steel market, Dedicated Group can also help British Steel Group's products find more profitable sales channels. As a Chinese private enterprise with a scale of 11 million tons, Jingye Steel is in the middle of the steel industry. However, it is difficult to effectively break through the expansion of competition in China. The acquisition of British steel should be a breakthrough based on its promotion of international competitiveness. direction.But the situation does not seem to be optimistic. The latter believes that, first of all, the strength of trade unions in overseas markets is strong. In fact, the UK and the European Union are buying steel mills, and apart from the high investment in fixed assets, the first problem is likely to be a heavy employee burden. The development of the old industrial countries has come to an end, there is no increase in demand, only fluctuations, ups and downs. An industry observer said to the Economic Observer on November 15 that "in addition, the UK's economy is relatively limited in global influence, and the country's steel is relatively weak."
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