Research On Development Strategies Of Rare Earth Industry In Baotou

The development of Baotou rare earth industry accelerates greatly the development ofeconomy of Baotou city, it could to improve industry structure in Baotou, to accelerate thedevelopment of rare earth-related industries in Baotou, to promote the development of thesurrounding area and economic power, and it has far-reaching meaning for regionaleconomic sustainable development. But, Baotou rare earth industry is facing with thegrowing problems of pollution, insufficient research grants, industrial chain extension, theconcentration of industry is still low. It has low occupation rate of high-tech products andfurther processing in the market, especially it lacks intellectual property rights in the high-technology and new materials. In May2011, State Council issued22-point policy packagefor encouraging the sustainable development of the rare earth industry, then the InnerMongolia provincial government issued the Work Program for consolidating andeliminating the upstream enterprises of the rare earth industry, both of these strategiesmake the Baotou rare earth to the restructuring model. But, obstacles and difficulties isvery serious in the course of enterprise restructuring, it is not suitable for the sustainableand healthy development of rare earth industry. Based on this background, this paperanalyzes in detail and intensively researches Baotou rare earth, to propose a strategy whichsuits for Baotou rare earth industry and to provide new ideas for development of Baotourare earth. This paper based on the development of rare earth industry in China and Baotou,and analyzing related policies, by using PEST analysis model and five forces model, analyzesthe macroscopically environment and microcosmic environment of Baotou rare earthindustry, to sum up the internal advantages and disadvantage, the external opportunities andthreats. Then by using expert scoring method and analysis hierarchy process (AHP),analyses of the points above with SWOT analysis quantitatively, we set up the weight andstandard of evaluation. Finally, to propose the strategic choice of Baotou rare earthindustry and give out some suggestions for the strategy. On the basis of both internal and external factors, the tensional development strategies should be taken to develop Baotourare earth. The guidelines are carefully implementing State Council issued22-point policypackage for encouraging the sustainable development of the rare earth industry,accelerating the transformation of the pattern of rare earth development and rare earthrestructuring; progressing in conserving energy, reducing emissions and protecting theenvironment; strictly controlling mining capacity and smelting separation; developing newrare earth materials and high-end application products; transferring from the advantages ofthe resources to the industrial advantage then to the economic advantages; to build a world-class and the domestic first-class base to develop and research rare earth product.The innovative point of the paper is that quantitative anglicizing the index factors ofBaotou rare earth industry, and tensional development strategies should be taken todevelop Baotou rare earth. Based on the domestic environment, to protect rare earthresources and the environment, integration of resources, Baogang Rare Earth Companyshould implement strategy of big company or large group as soon as possible. Meanwhile,strengthening the emphasis on the production capacity and ability to provide auxiliaryitems, and strengthen supervision of enterprises and industry self-regulation.