Recently, Northeast Special Steel Group has completed industrial and commercial changes. The name of the company has been changed from Northeast Special Steel Group Co., Ltd. to Northeast Special Steel Group Co., Ltd. The main type of the market has been changed from limited liability company (state-owned holding company) to other limited companies (unlisted company). The registered capital has increased from 364.17 million yuan to 1037 million yuan. 7 million 358 thousand and 490 yuan.

After the reorganization, the Northeast Special Steel shareholders have developed from the previous four to the present 177, some of which are the main reorganization parties, such as Jincheng Shazhou, Benxi Iron and Steel; some financial institutions as capital investors; and some of the original creditors implemented the "debt-to-equity swap". Northeast Special Steel, as an important special steel enterprise in Northeast China, plays an important role in national defense, military industry, aerospace and other high-tech undertakings.

The reorganization will help Northeast Special Steel to solve the remaining debt problems, inject new capital, and introduce a new management model, which will help enterprises to glow new vitality. Northeast Special Steel has become the first successful bankruptcy case after default of state-owned enterprises'credit bonds. Where will the merger and reorganization of iron and steel enterprises go in the future?

01, China's iron and steel industry is still facing low concentration development problems.

At present, China's steel industry is still facing the problem of low industrial concentration. In 2017, the cumulative output of the top ten steel enterprises in China accounted for 36.9% of the total output of the country (CR10), up 1.0 percentage points from 2016, but far from the goal of 60% steel industry concentration, and with Japan, South Korea, Russia, the United States and other countries there is a big gap. According to the monitoring data of Lange Steel Research Center, in 2017, the cumulative output of the first two steel enterprises in Korea accounted for 89.2% (CR2 = 89.2%); the output of the first three steel enterprises in Japan accounted for 81.5% (CR3 = 81.5%); and the output of the first four steel enterprises in Russia accounted for 78.0% of the total output of the country. (i.e. CR4 = 78.0%) and the first three steel mills in the United States accounted for 57.7% of the country's total output (i.e. CR3 = 57.7%).

02 merger and reorganization is an important way to enhance the concentration ratio of China's iron and steel industry.

In 2016, due to the reorganization of Baosteel and WISCO and the establishment of Baowu Group, the concentration of China's iron and steel industry has been improved, reversing the trend of four consecutive years of decline in the concentration of the iron and steel industry, CR10 (the cumulative crude steel output of the top ten iron and steel enterprises in the country's crude steel output ratio) rose to 35.9%, an increase of 1.7 percentage points year on year.

In 2017, the steel industry completed a number of heavyweight iron and steel enterprises annexation and reorganization. Including the strategic reorganization of CITIC Qingdao Special Steel, the integration of Baowu Group's capital market, the reorganization of Shagang and Benxi Steel, the reorganization of Beiman Special Steel and Acheng Steel by Beijing Jianlong Heavy Industry Group, and the establishment of Changshou Iron and Steel Company jointly funded by Baowu Series Four Sources Fund and Chongqing Zhanxin Fund to participate in the bankruptcy and reorganization of Chongqing Iron and Steel Company, and the Special Steel was transferred to China Food and Agriculture Group by the Southern Industrial Group without compensation, and the industrial structure has undergone considerable adjustment. Under the impetus of merger and reorganization and output growth of large-scale iron and steel enterprises, China's iron and steel industry concentration in 2017 further improved.

03 cross regional, cross ownership, cross industry restructuring mode has been constructed.

At present, the cross regional and cross ownership restructuring barriers between iron and steel enterprises have been gradually broken. In cross-regional aspect, Shougang reorganized Changgang, Shuigang, Guiyang Iron and Steel, Tonghua Iron and Steel to achieve cross-regional reorganization of state-owned enterprises; Jianlong reorganized Haixin Iron and Steel to achieve cross-regional reorganization of private steel enterprises. In cross-ownership, Baosteel reorganized Bayi Steel, Shaoguan Steel and Chongqing Iron and Steel Co., Ltd. as a model for central enterprises to reorganize local state-owned enterprises; Jincheng Shazhou reorganized Northeast Special Steel Co., Ltd. as a model for private steel enterprises to reorganize state-owned enterprises. COFCO's reorganization of Zhongyuan special steel has also become a typical case of cross industry restructuring.

04 four major steel integration fund to help iron and steel industry consolidation and upgrading

Following the establishment of Siyuan He Iron and Steel Industrial Structure Adjustment Fund by China Baowu Group in conjunction with WL Ross Company, Sino-US Green Fund and China Merchants Bureau Group in 2017 to integrate Chongqing's iron and steel assets, there are also three acquisition s, namely Changcheng He Steel Industrial Development Fund, Shanxi Iron and Steel Industrial Structure Adjustment Fund and Huabao llurgical Asset Management Co., Ltd. Gold has been established.

At present, the M & A fund in the steel industry has gradually become the main body of the market and capitalization of the integration of steel industry. Relying on the integration and expansion of iron and steel as well as upstream and downstream industrial chains, the role of iron and steel funds in the merger and reorganization of the iron and steel industry has gradually emerged, which will accelerate the upgrading of the concentration of the national iron and steel industry and the optimization and upgrading of the overall industry.

05 the integration planning of iron and steel enterprises is gradually coming out.

As a major producer of steel in Hebei, the integrated planning of iron and steel industry is quite clear. As early as 2016, the 13th Five-Year Plan for Industrial Transformation and Upgrading in Hebei Province pointed out that joint restructuring and relocation of enterprises should be accelerated. By 2020, a "2310" industrial pattern will be formed, with two major groups of Hegang and Shougang as the leading group, three local steel groups of Qian'an, Fengnan and Wu'an as the support and 10 characteristic steel enterprises as the supplement, so as to realize the transformation from a big steel province to a strong steel province. In 2018, according to the work programme of the iron and steel industry in Hebei Province (2018-2020), by 2020, the number of iron and steel smelting enterprises in Hebei Province will be reduced to about 60, and the production capacity scale of the first 15 enterprises will account for more than 90% of the province. Among them, Tangshan city plans to integrate the city's steel enterprises to less than 30 by 2020, 2025 to reduce to about 25. Wuan plans to integrate 14 iron and steel enterprises into 5 to 6 iron and steel enterprise groups by 2020. Handan will focus on promoting Baoxin steel, Ji Nan steel, Taihang iron and steel, Yong Yang special steel four.