Shanxi Coal Industry Restructuring Performance Analysis

The coal industry is an important basic industry in China; it is also the main pillar of economic development in Shan Xi Province. After several years of resources integration and recombination as well as reorganization, the reorganization of the coal industry in Shan Xi Province has been completed fundamentally. Analysis on the performance of Shan Xi coal industry restructuring has important theoretical and practical significance to consolidate the restructuring work of the coal industry in Shan Xi Province and provide references for integration works in other regions.This paper takes the industrial organization theory as the theoretical basis, by means of the SCP paradigm of Harvard School, conducting a theoretical performance analysis on the causes of poor performance before the restructuring, the mechanism of restructuring alteration and the expected performance after restructuring the coal industry in Shan Xi Province. The analysis shows that:the fragmented market structure of the coal industry in Shan Xi Province before the reorganization determines the short-sight of the enterprises and disorderly competition, resulting in poor performance; change the market structure through industrial restructuring, making the market conduct of coal enterprises gradually standardized and the market performance improved; At the same time, the reverse effect which is conductive for coal industrial structure transform to more monopolized market structure is also apparent; the coal market structure is expected to be an oligopoly one.On the basis of evaluation criterion of industrial organization theory on the market performance, from multi-dimensional angles of finance security, sustainability and environment protection, this paper constructs a evaluation criteria system for the restructuring market performance of Shan Xi coal industry. Using this index system, we measure the actual performance of Shan Xi coal industry after its restructuring and compare it with expected performance by means of mass data. The results shows that:the overall restructuring performance of Shan Xi coal Industry has significantly improved, embodied in industrial profitability, DRPMT, coal resources recovery ratio and so on; the financial performance and safety performance have reached the expected performance after reorganization, the object of sustainable resources performance is basically completed, while the environmental protection performance has not yet achieved the expectation; the reason lies in the target market structure of the coal industry which has not formed oligopoly. Finally, this paper supplies corresponding policy suggestions based on the strengths and weakness revealed in the restructuring process of Shan Xi coal industry.