Wuhan Iron and Foreign Acquisitions of Domestic Integration
It is reported that the recent market rumors of Wuhan Iron and Steel production in the months of this year, 1,2 did not meet expectations, the writer on this link Wuhan Steel shares secretaries to directorate to do, as I dispatch, secretaries to directorate office telephone has been unanswered. Although the Ministry of Industry and Chinese officials insist there are still iron ore bargaining chips, but industry in general that the iron ore import prices is no longer any suspense, the differences only increase. At the same time, China’s third largest listed steel company, wearing “Guo Zihao” red vests, Wuhan Steel shares have definitely been a huge influence, with overseas mining rights, are in 12 trillion investment plan will start and a syndicate of Hubei Province the whole concept of Wuhan Iron and high profile listing.
Wuhan Iron and foreign acquisitions of domestic integration.March 22, Hubei Province, Hubei Province Development and Reform Commission Xu Kezhen announced the 12 trillion investment plans. This has been dubbed the wrong decimal point investment plan, the stock market sparked ripples. March 25 Hubei section of the 68 stocks with 56 gains across the board, the overall increase of 3%.Regional leading hardware steel enterprises, the concept of integration of assets, 12 trillion of investment and so good under the increasing demand for both steel point to the Wuhan Steel shares, however, and the Hubei section of the other stocks, like, 12 trillion investment in the media crusade against the wave, Hubei plate showed only one day, the day Wuhan Steel shares rose just 1.2%.
Huatai Securities [21.80 0.46%] steel industry researcher Xiao Ming Qiu said: “The markets are more rational, strong merger and Disadvantaged Business Enterprises do not have to upgrade the technical capabilities, bring or extensive production, so not a real good asset integration, such as Hebei Iron and Steel [5.420.56%] After the reorganization, stock investors is the judge. but I think the leading regional steel prices in real terms this is good, if a local open construction, using local steel enterprises are generally steel, personally think that with the combination of government guidance to equity, retention capacity, as in the reduction of energy consumption, improve production efficiency and environmental standards make efforts up and down. ”
Liu Yuanrui said: “advantage in integrating the disadvantaged business enterprise output when the technology, Wuhan in Hubei into the steel assets appear more urgent, because there is some competition in the industry, while the integration of Kunming Iron and Steel is less anxious. 2010, Wuhan Iron and Steel ability to achieve expected production is currently not good conclusion. In addition, more transparent information on steel, wood supply and demand for large one in Hubei Province, Wuhan Iron and Steel’s profits, but does not represent a large, accounting for freight costs in the steel is relatively small, located in the middle Hubei transport facilities, a gap if the steel supply, steel enterprises around the provinces of Hubei to enter the market quickly. ”
I learned this year to 68.46 million U.S. dollars in the acquisition of state of Liberia, after mining, the number of WISCO’s overseas mining rights to the four, the other three are located in Australia, Brazil and Canada. Wuhan Iron and Steel 85% per year of iron ore imported.”The figure and Deng Qilin population figures there are some gaps. Has an interest in overseas mineral does not mean that people must sell it to you. Iron ore demand so great, as long as some people rush to Hong Kong, and many minerals in fact not meet the relevant standards. Although the Wuhan Iron and Steel is a large steel enterprises, but the quality of iron ore may not be guaranteed, on the blast injuries are inevitable, so the quantities are directly affected. “Shanghai, a steel industry veteran told reporters.
Clifford Chance managing partner how I think Tobe told the newspaper Kamagra Gold that many mergers and acquisitions difficult to accomplish, even if completed, follow up there are still many challenges. As an example, foreign trade union system and, unlike China, many Chinese enterprises do not consider this issue.Great Wall Securities analyst Liu Yuanrui Steel said during an interview: “I have recently done the research, Wuhan Steel’s blast furnace operation is not very stable condition, intended to reduce costs, it may do very well, while iron ore and coke quality good effect on the blast furnace is not small. firm yield of 1,2 month, 112 million, 1.06 million tons, lower than the previous 1.35 million tons production planning. ”
Wuhan Iron and Steel Group, Wuhan Steel shares to seek the help of the overall market. Deng Qilin, general manager of Wuhan Iron and Steel Group, said the first half of the first to Echeng into Wuhan Iron and Steel shares, which will enrich Wuhan Steel’s rebar varieties. Will be followed by the injection of Liuzhou Iron & Steel and Wuhan Steel Kunming Steel’s assets.
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