Competitive machining and manufacturing made in China
Today is an era of rapid Internet development. Technology giants such as Alibaba, Tencent, and Huawei have been born in China. Competitive machining and manufacturing made in China
China was once known as the world’s manufacturing factory. The dividends brought by the manufacturing industry have promoted economic development, and Chinese products have been sold all over the world.
However, in today’s production capacity upgrade, a developed manufacturing industry can no longer represent anything. The virtual economy is constantly developing, and many real manufacturing giants have fallen down in the long history, and this includes the domestic manufacturing giant Bohai Iron and Steel Group.
Bohai Iron and Steel Group is very different from traditional iron and steel groups. Traditional concept manufacturers usually reach a higher level after more than ten years or even decades of development, while Bohai Iron and Steel Group was formally established in 2010. Established, it took 4 years to break into the world’s top 500 successfully. Competitive machining and manufacturing made in China
In 2014, Bohai Iron & Steel was selected for the first time in the selection of Fortune magazine in the United States, and ranked 327th among all the world’s top 500 companies. Ranked fifth among domestic steel companies, and was shortlisted again the following year.
- Merged and established, but independent
In July 2010, under the impetus of administrative forces, Tianjin Iron and Steel, Tianjin Tiantie Metallurgical Group Co., Ltd. (referred to as Tiantie Metallurgy), Tianjin Steel Pipe Group Co., Ltd. ) Four state-owned enterprises jointly established Bohai Iron and Steel Group. This year, China’s GDP grew by 10.6%, which was the last high point of China’s economy in eight years. It fell below 10% in the following year, and it is expected to show an L-shaped trend after all the way down.
After more than three years of reorganization, the four companies achieved their first financial consolidation and entered the list of the world’s top 500 companies in 2014 and 2015. However, the four companies are doing their own thing, and the substantive restructuring has not been completed. Coupled with the fact that the energy industry in China and even the world has entered a down cycle, a series of problems broke out in 2016.
But in fact, the iron and steel manufacturing industry has already begun to face a cold winter when Bohai Iron and Steel was established. Relying on borrowing to expand, Bohai Iron and Steel successfully ranked among the world’s top 500, but in fact it did not make much profit. Competitive machining and manufacturing made in China
By 2015, the price of steel had fallen to the price of cabbage. Under the double blow of severe shrinkage in the steel market and overcapacity, Bohai Iron and Steel was on the verge of collapse. Under continuous losses, Bohai Iron and Steel finally fell. Now it is even more indebted, and the debt has reached hundreds of billions.
- The debt problem is serious
It can be seen from the above figure that although the revenue in 2013 was much lower than that in 2014, the profit in 2014 was much lower than that in 2013. In 2015, the amount of financial debt involved in Bohai Iron and Steel was 192 billion yuan.
A total of 105 creditors were involved in the debt, among which Bank of Beijing, Bank of Tianjin, Tianjin Binhai Rural Commercial Bank, China Construction Bank, Shanghai Pudong Development Bank, Industrial Bank and Bank of China were more involved. The credit balances of the first three banks are tens of billions of yuan, and the last four are between 6 billion and 10 billion yuan, all of which are not decimals.
In 2018, the companies on the verge of bankruptcy and already bankrupt are far from the large private enterprise groups such as Dunan Group, Watermart Battery, and Gionee Mobile. Bohai Iron and Steel, a Fortune 500 company with a state-owned background, officially went bankrupt with a debt of 192 billion yuan. The bankruptcy and reorganization of Bohai Iron and Steel Group involved a total of 48 affiliated enterprises, distributed in Tianjin and Hebei Province. Judging from the current data, the bankruptcy of Bohai Iron and Steel should be the largest corporate bankruptcy case in 2018. Competitive machining and manufacturing made in China
At that time, the original intention of establishing Bohai Iron and Steel Group Corporation was to enhance the concentration and comprehensive competitiveness of the iron and steel industry, which is conducive to the unified planning of the iron and steel industry, the adjustment of structure, the rational allocation of resources, the reduction of redundant construction, energy saving and emission reduction, the elimination of backward production capacity, and the transition to fine processing and high-end products. In addition, the synergy between the four major enterprises can be strengthened and the advantages of scale can be brought into play.
As the largest state-owned steel group in Tianjin and one of the world’s top 500, Bohai Iron and Steel has only survived for 6 years, with a high debt of 192.4 billion, involving 105 creditors.
- Repent and split
In April 2016, Bohai Iron & Steel was officially split by the Tianjin Municipal Government, and four state-owned enterprises including Tianjin Iron & Steel became independent again. The split is less than 6 years away from the reorganization of Bohai Iron and Steel.
In the face of difficulties such as overcapacity, lack of management, and debt pressure, Tianjin’s original debt restructuring plan for Bohai Iron and Steel has been rejected. “Transfer” means short-term to long-term, high-interest to low-interest, and debt-to-equity swaps, while “two write-offs” means to write off part of the debt by using the overcapacity reduction policy, and write off part of the debt by using the fund and bank policies. Competitive machining and manufacturing made in China
In the context of continued economic downturn, some state-owned enterprises are still unable to escape the fate of being overwhelmed with debt even with the government’s “blood transfusion”. There are many reasons for this, but state-owned enterprises are no longer the iron rice bowl we imagined! Do you still dare to buy the bonds of state-owned enterprises?
Conclusion:
As a former domestic giant, Bohai Iron and Steel had no choice but to go bankrupt, and even his headquarters office building was forcibly auctioned off. Maybe defeating Bohai Iron and Steel is not a competitor, but this era.
Another domestic giant has fallen. It took 4 years to enter the world’s top 500, but now it has a debt of 192 billion. As the world’s top 500 Bogang Iron and Steel wants to find a good buyer. Looking around, there are no such private companies or private companies. A small number, and when it comes to assuming the nearly 200 billion debts of Bogang, in fact, only large state-owned enterprises can pay the bill. Even large state-owned enterprises are hot to pick up. Competitive machining and manufacturing made in China