The reconstruction of metallurgical construction "national team"

After the outbreak of the international financial crisis in 2008, the market shrank seriously, China's steel industry fell into the dilemma of overcapacity, and the level of corporate profitability continued to decline.

Affected by the downturn in the steel industry and blind mergers and acquisitions in previous years, MCC Group fell into a heavy burden and the bottom of the decline in benefits. Data show that in 2012, the loss of MCC Group as high as 7.36 billion yuan, is the central enterprises in the "big loss", in addition, interest-bearing liabilities of more than 170 billion yuan, entertainment accounts and inventories up to more than 210 billion yuan, a number of banks to stop credit, the capital chain is on the verge of breaking, the survival and development of enterprises are facing a severe test.

The same team, from 1948 to the "cradle of China's steel industry" - the construction of Angang, to the construction of Wisco in 1955, Baotou in 1957, Pangang in 1965, Baosteel in 1978, MCC has witnessed the development of China's steel industry from scratch, from small to large. It has made important contributions to the development of China's iron and steel industry, and is a well-deserved metallurgical construction "national team".

China Metallurgical Group in trouble where to go? Metallurgical construction "national team" how to rebuild competitiveness?

With the "9·5" meeting in 2012 as a turning point, under the leadership of the newly appointed General manager of MCC Guo Wenqing (chairman of MCC since September 2013), MCC aimed at the breakthrough of the transformation and upgrading of the steel industry, and opened a new journey of "returning to the main industry" and reshaping the metallurgical construction "national team".

Since 2016, with the deepening of supply-side structural reform, the steel industry has begun to recover, and in 2018, the economic benefits of China's steel industry have reached the best level in history. The process of reshaping the metallurgical construction "national team" of MCC has achieved the same frequency resonance with the supply-side structural reform of the steel industry, and has made important contributions to solving steel overcapacity and transformation and upgrading, at the same time, MCC has also regained a new life in the test and embarked on the road of high-tech and high-quality development.

Return to one's main occupation

Zhanjiang Iron and steel project

Iron and steel industry is one of the basic industries of the country, with typical cyclical development industry characteristics. Throughout the development process of modern world steel industry, the development state of growth and adjustment resonance, prosperity and low tide alternately. As a company born for China's steel industry, MCC also has to face the impact, risks and challenges brought by cyclical fluctuations in the steel industry.

In the first 10 years of the 21st century, with the rapid development of China's iron and steel industry, the scale of MCC Group has also grown rapidly, and ranks among the world's top 500.

The rapidly growing MCC Group, too optimistic about the market situation and its own ability, in the case of incomplete professional and organization, has entered the paper, cold rolling, mining, smelting and other business fields, many design and construction enterprises are "the whole people" to engage in real estate, so that the operation and financial risks of enterprises are highly concentrated.

After the outbreak of the international financial crisis in 2008, the market shrank severely and China's steel production capacity was severely excess, which dealt a heavy blow to MCC. From 2011 to 2013, MCC Group was listed as a debt risk special supervision enterprise by SASAC for three consecutive years, and its business performance assessment was rated D for two consecutive years.

The crisis and lessons in front of it prompted MCC Group to rethink its pain and begin to rethink its future.

After the rapid development in the past few years, MCC Group has formed a pattern of "one industry dominant" in metallurgy. "MCC was born because of the steel industry, and has made great contributions to the development of China's steel industry, but at the same time, its dependence on metallurgical business is also relatively large." Even as the global steel market slumped in 2012, the metallurgical business still accounted for nearly half of the company's revenue. The cyclical fluctuations in the steel industry have also had a huge impact on the development of MCC." MCC Group chief engineer Xiao Peng to "state assets report" reporter said.

Affected by factors such as maket contraction, overcapacity and rising raw material costs, China's steel enterprises have experienced a comprehensive decline in benefits, operating difficulties, and new investment in steel has fallen off a cliff. For enterprises such as MCC Group, which mainly provides specialized services for steel enterprises, the pressure can be imagined.