Risk Analysis And Countermeasure Researches On Reshuffle Of Jiangxi XY Steel Enterprises

In recent years, with the rapid development of Chinese economy, a new round of investment boom emerges in the domestic steel industry. However, compared with the world steel giants, China’s steel enterprises scale still stays in low level. As being an industry with strong character of scale-economy, the domestic steel enterprises must expand their scale to improve the competitiveness and the competitive position in the world. In2005, with the promulgation of Iron and Steel Industry Development Policies, qualified enterprises are encouraged to expand scale by M&A. Functioned as a growth method for enterprises, M&A provides opportunities as well as enormous risks to them, illustrated by many cases of failed restructuring both at home and abroad. Because of the uncertainties in implementing, some of M&As, though having positive initial intentions such as to maintain and develop the competitive advantages, or to fulfill low-cost expansion etc., end in unsatisfactory outcome for objective reasons, thus the restructuring effect is also influenced by these. By studying the twice restructuring experiences of Jiangxi XY iron and steel enterprise, this paper analyses the risks of this company during the process, and proposes strategies of defusing risks, to offer some beneficial suggestions for the inter-provincial acquisition next time.Chapter Ⅰ Introduction introduces the development of restructuring theory and practice of foreign iron&steel industry, points out the status and the hidden risks of China’s steel industry restructuring and reorganization. Chapter Ⅱ is the general theory analysis for corporate restructuring which proposed the static risk and dynamic risk after the reorganization. Chapter Ⅲ presents the basic situation and problems in the restructuring progress of the Jiangxi XY steel corporation:the power of the XY steel twice-restructuring, the problems after the reorganization. Chapter Ⅸ give out an analysis of risks and its causes in the progress of restructuring&reorganization of Jiangxi XY steel. By analyzing the risk of restructuring&reorganization, this part points out how the risk formatted. In Chapter Ⅹ the measures are given to defuse the risk of the restructuring of Jiangxi XY iron and steel enterprises, and several proposals are brought for the further development.