Discussion On Some Problems About Reorganization And Merger Of Fujian Iron And Steel Enterprises

China’s economy has come into a new normal in recent years,which will guide the future development directions for steel industry and promotes.profound transformation of the steel industry in variety quality,growth pattern and comprehensive competitive power.Therefore,at present and in the future a period,the supply side is the main contradiction,and the steel industry is the hardest hit.There are many practical problems like serious excess capacity,low industrial concentration,nonideal product structure and weak ability in technology innovation,etc in the current steel industry of China.The central committee put forward the supply side structural reform in strateg conception,the key is "to productivity,deleveraging,inventory,reduce cost,make up the short board".Requires all parts of the country to vigorously reduce crude steel production capacity.This task has a long way to go,but the steel industry mergers ’and acquisitions are the main ways to solve the problem.The research on reorganization of China steel enterprises had a rather late start and there is rare systematic and deep research on how to reorganize numerous small and medium steel enterprises under new normal effectively and on regional market product structure.As there are few reorganization samples of domestic small and medium steel enterprises,the paper aims to fill the gaps in reorganization research of domestic small and medium steel enterprises.Hence,the paper is of a certain theoretical significance.At the same time,the paper proposes related political suggestions’on the reorganization questions of small and medium steel enterprises,which provides new thoughts for the discussion on merger and reorganization of China numerous small and medium steel enterprises and is of great practical guiding significance to the merger and reorganization for China iron and steel enterprises.In this paper,the SCP model of industrial organization theory as the main analytical framework.The paper discusses the current situation of excess capacity of the iron and steel industry in our province.and the inherent relationship between the industrial concentration degree and market competition behavior,To explore the current situation of excess capacity in the steel industry in our province,Excess capacity and industry concentration,the internal relationship between market competition behavior.And from the market structure,industry profit,technical progress and other dimensions to analyze the impact of excess capacity on market perfonnance.To this end,this paper proposes that mergers and acquisitions should be used as the main path to eliminate backward production capacity,to clear zombie enterprises.On the basis of analyzing the main obstacles and patterns of the steel industry M&A,With San steel as the main case,The paper puts forward the main measures and policies to promote the M&A of iron and steel industry in our province.The author hopes that a suitable road for the development of Fujian steel industry can be found through the research of the paper.