Research On The Governance Of Overcapacity In The Steel Industry By Mergers And Acquisitions

As a relatively important basic industry in the process of industrialization development,the steel industry is a pillar industry of a country's national economy.It has a strong driving role,and the rapid development of the steel industry has driven the accelerated development of other industrial industries.Since the 21st century,China's steel output has ranked in the world for many years,basically meeting the demand for steel products in the growth of the national economy.However,while the steel industry is developing rapidly,the accumulated contradictions have become increasingly prominent.Coupled with the slowdown of domestic economic growth,the phenomenon of overcapacity in China's steel industry has seriously affected the stable development of the steel industry and fully highlighted the overcapacity of the steel industry.In this context,the "supply-side reform" proposed by the state at the 11th meeting of the Central Financial and Economic Leading Group in 2015,"de-capacity" was listed as the primary task of supply-side reform,providing guidance for China's steel industry to overcapacity..In order to implement the"de-capacity" task,the "Steel Industry Adjustment Policy" promulgated by the Ministry of Industry and Information Technology in 2015 proposed "to further optimize and adjust the structure of the steel industry,accelerate mergers and acquisitions",and mergers and acquisitions as a key means and means to resolve overcapacity.Further elimination of the backward production capacity of the steel industry will set an example for the implementation of mergers and acquisitions in more overcapacity industries.However,mergers and acquisitions reorganization itself is a micro-enterprise behavior.Is this micro-enterprise mergers and acquisitions responsive to the macro-capacity industry overcapacity?What path does M&A and restructuring have on the overcapacity of the steel industry?What is the specific mechanism of M&A and restructuring to manage overcapacity?These issues constitute the main research content of this paper.Based on the above problems,this paper follows the basic research-theoretical analysis-case study-conclusions to promote the relevant research in a layer-by-layer manner:First of all,this paper uses the literature research method to sort out the causes and treatment methods of overcapacity in the domestic and international steel industry,and clarify the existing research shortages and the main research directions of this paper.Secondly,based on the theory of gradient transfer,efficiency differentiation and technology innovation,the mechanism of M&A and restructuring to overcapacity is discussed in three aspects:transferring excess capacity,improving industry concentration and realizing technological innovation and upgrading.The mechanism of action.Then,using case study method,Hebei iron and steel industry mergers and acquisitions as a case study obj ect,from the micro-enterprise mergers and acquisitions behavior,based on the analysis of the status quo and causes of overcapacity in the steel industry in Hebei Province,in-depth and systematic exploration of mergers and acquisitions Reorganize the path and mechanism of overcapacity in the steel industry in Hebei Province,and analyze and test the effect of this micro-enterprise mergers and acquisitions on the macro-capacity overcapacity.This paper believes that the merger and reorganization of the steel industry mainly through three paths to overcapacity:First,high-gradient regions transfer excess capacity to overseas through cross-border mergers and acquisitions to reduce excess capacity;second,horizontal mergers and acquisitions of enterprises help small enterprises to withdraw from the market.This will increase industry concentration and reduce inefficient production capacity.Third,mergers and acquisitions will facilitate technological innovation and upgrading.The synergy effect of scale will enable the combined enterprises to have more power to develop high-tech and thus overcapacity.Finally,this paper proposes countermeasures and suggestions for the overcapacity of the steel industry:China's steel industry should resolve the short-term and medium-term combination strategies to resolve overcapacity.In the short term,it is necessary to strictly control new capacity,control non-compliant production capacity and eliminate backward production capacity;in the medium term,we must actively guide the withdrawal of production capacity and promote market-oriented mergers and acquisitions to resolve overcapacity;in the long run.we must strengthen technological innovation of steel enterprises and enhance the industry.Connotation,improve core competitiveness and enhance the industry.Connotation,improve core competitiveness.