Research On The Effect Of Steel Enterprise Reorganizationunder Supply Side Reform

The supply-side reform and the “three to one,one reduction and one supplement” were officially proposed in 2015,reflecting the government’s aim to promote supply-side adjustment through reforms and better adapt to changes in demand.In recent years,problems such as overcapacity and profit reduction and even loss in the steel industry still exist,and the business development of iron and steel enterprises will still face greater risks.Asset restructuring is not only an objective requirement for the integration of traditional steel industry into the emerging ranks,but also an effective way for steel companies to achieve transformation and upgrading.Shandong Steel has accumulated a number of asset restructuring actions in 2014-2017,focusing on three methods: fixed purchase,asset divestiture,and sale and leaseback.This has produced a series of positive reform effects,and there are still shortcomings in the transformation process.The office still needs improvement.Therefore,it is necessary to study the reorganization effect of Shandong Steel based on the supply side reform.On the one hand,this will provide reference for the future transformation and upgrading of Shandong Steel;on the other hand,it can also bring positive enlightenment to the sustainable development of the steel industry and related enterprises.Through case studies and comparative analysis,the paper has achieved remarkable results in three aspects: capacity adjustment,financing optimization and operational improvement.The company promoted coastal capacity building through fixed acquisitions,while reducing asset-liability ratio and injecting more resources;the company reduced inland production capacity through asset divestiture,realized cost reduction and efficiency improvement and improved debt structure;the company supplemented development funds due to sale and leaseback and improve the efficiency of asset use.At the end of the paper,it is concluded that the multiple asset restructuring actions of Shandong Iron and Steel under the supply-side reform have achieved initial results,but in the future transformation process,it will still face three major challenges: high technical requirements,large capital demand and weak profitability.Finally,from the perspective of listed companies,three feasible proposals were proposed,namely,integrating technology to promote product value-added,green finance to ease financing pressure and expanding market to help performance growth.