Research On Vertical Integration Of Guangxi Y Aluminum Business

In recent years, as China’s economic transition from rapid growth to the new norm, aluminum industry growth has gradually slowed from the explosive growth in the face of declining demand for aluminum products, aluminum prices fell sharply, and other difficult challenges such as bauxite imports. Meanwhile, the aluminum industry is facing structural overcapacity, industry restructuring, and the change of the production mode of growing pains.Vertical integration which is consists of industry resources, the combination of supply chain competitiveness, industry concentration improvement and the emphasis of critical method. Guangxi Y aluminum business is set for power generation, heating, mining, alumina, aluminum, aluminum rod, aluminum rod aluminum and other industries in one of the enterprises. In the case of aluminum for the industry as a whole is greater than the demand, the majority of business losses by Guangxi Y aluminum corporate status quo analysis, and obtained by the integration of its goods in transport, trade settlement, economies of scale, energy efficiency, etc. against risks we achieved good results, but its vertical integration there is irrational industrial structure, and the industrial layout is not quite reasonable, high-end processing capacity and weak inadequate. The principal factors that caused above issues are the high cost of electricity industry structure in balance, tight financing environment restricting further development of enterprises, and lack of senior personnel limiting the progress of aluminum enterprises.Reference Yunnan shares Alcoa integration experience, summed up the characteristics and routes of aluminum vertical integration, and accordingly applied in Guangxi Y aluminum companies and the implementation of vertical integration Yunlvgufen difference in basic conditions, analysis of Guangxi Y aluminum enterprise vertical integration optimization of the necessity and feasibility of Guangxi Y vertically integrated aluminum companies by the use of PEST, physical competition model.Based on the above analysis that presented in Guangxi Y aluminum vertical integration to operate in line with a clear position and firm direction, confirm the target. And according to local conditions, go all out with the spirit of the five principles, as well as three different vertical integration, choice, proposed production capacity integration, optimization industrial layout, and enhance product innovation, establish a good political and business relations, accelerate the cultivation and develop financial markets, improve the modern enterprise management structure, promote green production, and strengthen civil-military integration and other optimization measures.