Central enterprises resolve excess capacity and enter the critical period of coal and steel

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Abstract Resolving excess capacity is an important task to deepen the structural reform of the supply side, especially in the coal and steel sectors. The pace of capacity reduction of state-owned enterprises has accelerated significantly this year. The "Economic Information Daily" reporter learned that many central enterprises have formulated relevant plans and specific plans, and many provinces...
Resolving excess capacity is an important task in deepening supply-side structural reforms, especially in the coal and steel sectors. The pace of state-owned enterprises' capacity reduction has accelerated significantly this year. The "Economic Information Daily" reporter learned that many central enterprises have formulated relevant plans and specific plans, and many provinces and cities are actively promoting according to the announced de-capacity targets. The State-owned Assets Supervision and Administration Commission is speeding up pilot projects involving industries with excessive overcapacity such as coal and steel, establishing a market-based exit mechanism for the survival of the fittest, and conducting overcapacity enterprises that do not meet the national energy consumption, environmental protection, quality, safety and other standards and long-term losses. Stop and transfer or strip the reorganization.
A few days ago, the National Development and Reform Commission, the National Energy Administration and other 16 ministries and commissions jointly issued the "Opinions on Promoting the Supply-side Structural Reform to Prevent and Resolve the Overcapacity of Coal-fired Power Generation", and announced the scale of coal-fired power regulation in each province and the suspension of coal-fired power units in various provinces. Slow build list. According to the statistics of the "Economic Information Daily" reporters, among the nearly 100 suspended construction coal-fired power projects, state-owned enterprises accounted for more than 75%. Among them, there are 33 coal-fired power projects that have been suspended, of which 20 involve central enterprises or state-owned enterprises, accounting for more than 60%; 61 projects are slow-moving projects, 51 of which involve central enterprises or state-owned enterprises, accounting for 83%.
The data released by the National Development and Reform Commission recently showed that in the first half of this year, the coal production capacity was 111 million tons, and 74% of the annual tasks were completed. The cumulative coal production capacity exceeded 400 million tons. According to the latest data of the State-owned Assets Supervision and Administration Commission, in the first half of the year, central enterprises accumulatively solved the surplus steel production capacity of 5.95 million tons, and completed the annual task ahead of schedule; resolved the excess coal production capacity of 6.59 million tons and restructured coal production capacity of 13 million tons.
Since the beginning of this year, a number of central enterprises in the coal, steel and other industries have set a timetable, and relevant reforms and work are progressing in an orderly manner. China Huaneng Group said that before the end of 2018, it will withdraw its coal production capacity by 9.14 million tons per year, dispose of 16 households with zombie enterprises and 4 enterprises with special difficulties, and shut down the 6.47 million kilowatt coal-fired power units during the 13th Five-Year Plan period. The Poly Group announced plans to complete the restructuring and integration of 39 zombie companies in three years to ensure that the loss will be reduced by more than 50%. China Southern Power Grid Co., Ltd. will remove production capacity from the power supply side, resolutely implement the policy of “eliminating a batch, slowing down a batch, and slowing down a batch of nuclear power”, and promoting the energy authorities to install the “13th Five-Year” thermal power in the five southern provinces. The new scale is controlled below 42.85 million kilowatts. From 2020 onwards, the total non-fossil energy consumption of the whole network will be no less than 50%.
After the merger of Baosteel and Wuhan Iron and Steel last year, it proposed the goal of reducing production capacity by 5.45 million tons in 2017. According to the latest announcement of Baowu Group website, Baowu Group will maintain the target of reducing the excess capacity of steel by 5.45 million tons this year. Two 1800 cubic meters of blast furnaces and three 120 tons of converter equipment will be sealed before the end of the year, and a 110-ton electric furnace equipment will be dismantled. And all the smelting equipment that promised to be included in the solution of excess capacity will no longer resume production, and the storage equipment will be selected for international transfer.
Angang Group also announced the plan to resolve excess capacity this year at the beginning of the year. According to the plan, Angang will shut down a 70-ton electric furnace of Pangang Group Chengdu Steel and Vanadium Co., Ltd. in the first half of this year, exiting the crude steel smelting capacity of 500,000 tons/year, and shut down the relevant supporting production line, and will not resume production. The Angang Group announced that the plan was completed ahead of schedule in April, and that the facilities and supporting production lines that were promised to be shut down will not resume production.
It is worth noting that reorganizing and integrating planning and de-capacity has become one of the biggest highlights of this round of de-capacity work. From the recent reorganization of China Shenhua and Guodian Power, which has gradually surfaced, it is possible to glimpse the current idea of ​​integrating coal-electricity industry chain in the form of coal-electricity joint venture. If China Shenhua and Guodian Power are successfully restructured, a coal-fired power giant will be formed with a total asset of more than 1.8 trillion yuan. According to the plan of the State-owned Assets Supervision and Administration Commission, central enterprises will be reduced to less than 100 through reorganization and integration within this year. In particular, the integration of steel, coal and electric power businesses should be accelerated, so that professional steel and coal enterprises will become stronger and stronger, and the resources of coal-fired enterprises will become more powerful. Optimized configuration, other coal-related central enterprises in principle withdraw from the coal industry.
"In 2017, we must firmly grasp the 'bovine nose' of the 'zombie enterprise' and deepen the work of de-capacity." Meng Jianmin, deputy director of the State-owned Assets Supervision and Administration Commission, said in the 2017 Central Enterprise Steel and Coal De-capacity Work Conference held by the SASAC in May this year. . It is worth noting that with the deepening of the work of resolving excess capacity, the positive effects of its reforms are beginning to emerge. In the first six months of this year, the total profit of coal enterprises above designated size was 147.48 billion yuan, an increase of 140.31 billion yuan over the same period of last year.
“Whether the capacity can be smoothly promoted, to a certain extent, it is also affected by whether the staff placement work can be carried out steadily,” said a state-owned enterprise.
Many experts said that the central enterprises have turned into a critical period to resolve excess capacity, and new profit growth points are taking shape. Li Jin, chief researcher of the China Enterprise Research Institute, said that central enterprises have played a role as benchmarks and role models in the work of de-capacity. “The de-capacity from top-level design to specific implementation, clear planning, clear standards, de-capacity and state-owned enterprise reform and supply-side reform simultaneously and simultaneously.” Li Jin said that the future replacement of new capacity of steel and coal central enterprises is expected to accelerate. After the completion of the capacity-removal task, the focus will shift to layout adjustment and restructuring.

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