The flowers in the factory of rebirth are too fierce

The German representatives arrived in Ge'an in late December.

The two sides then launched the first round of negotiations.

ThyssenKrupp was very sincere, so the negotiations between the two sides went very smoothly. The German side agreed to the requirements of Gegang Holding with almost no hesitation in the first round of negotiations.

This clears the biggest obstacle for future negotiations.

Among the several options proposed by Gegang, the German side directly chose the second option and built a factory in Bincheng.

This is basically consistent with Ge Gang's original prediction. ThyssenKrupp built a factory in China because of the lower costs and labor in China compared to Europe. Most of the products produced by the new factory in the future will be exported to Europe. Bincheng, where shipping is more convenient, is naturally a better choice.

In order to shorten the construction time, the German side hopes to directly acquire a local steel plant in Bincheng.

Bai Shuguang and Wei Ning immediately reported the German side's opinions to Jin Huaying.

Jin Huaying held a special meeting for this purpose, and Lin Zhiyuan, as the leader of the large-scale working committee, also attended the meeting.

There was no disagreement between Gegang and the German side, and Gegang was highly unified internally, with everyone agreeing with this plan. This meeting mainly discussed some details of the acquisition of Bincheng Steel Plant.

The meeting did not last long, only about forty minutes.

Jin Huaying handed the matter over to Bai Shuguang, hoping that he could complete some preparatory work before the Spring Festival and start the first phase of negotiations with Bincheng and Bincheng Steel Plant.

After the meeting, Jin Huaying invited Lin Zhiyuan to her office.

"Zhiyuan, you didn't say much in the meeting just now!"

Lin Zhiyuan smiled, "Boss Jin, your work arrangement is very reasonable, and Boss Bai has rich experience. You handled it so well, what else can I say? As a dispatched person of a large-scale working committee, my main responsibility is to prevent the loss of state-owned assets. This time, Gegang cooperated with the German party, and the German party has agreed to Gegang's controlling stake. Obviously, these problems will not occur. Naturally, it is better for me to say less and not excessively interfere with the company's independent decision-making."

"You are not like others. You and Yuquan both came from Gegang. You still have to say what you need to say. After all, you are from a big agency in Yanjing. You are standing at a different height. You should give us more valuable suggestions."

Lin Zhiyuan thought for a while and said, "Mr. Jin, now is the golden period for the development of Gegang. I think you can take advantage of this opportunity to cooperate with foreign parties and take the opportunity to expand the scale of Gegang."

Jin Huaying raised his eyebrows. He obviously heard the hidden meaning of Lin Zhiyuan's words, "Zhiyuan, are you talking about the acquisition of Bincheng Steel Plant this time?"

Facing his former boss, Lin Zhiyuan did not hold back. "Boss Jin, I personally feel that the next period of time will be a period of rapid development for our country's steel industry. After rapid development, it will inevitably lead to overcapacity. At that time, the country is likely to take action to control production capacity. Of course, this may be a few years or even ten years later. Gegang played a leading role in the early stages of development. We should now be prepared for danger and stay sober in the fierce competition in the future..."

Lin Zhiyuan's words were a bit confusing, and Jin Huaying really didn't understand them, but he keenly grasped the four most important words in Lin Zhiyuan's words: control production capacity.

"Zhiyuan, do you mean that the country wants to cut down a number of unqualified small steel mills? But what does this have to do with Gegang? Do you want me to acquire a number of small steel mills?"

Lin Zhiyuan shook his head. "Mr. Jin, that's not what I meant. I meant that before we can control the production capacity, we should try to make Ge Steel as big as possible. If we want to acquire a steel mill, we should acquire a large-scale one."

"By large-scale steel plant, do you mean one like the Bincheng Steel Plant?" Jinhua asked tentatively.

Lin Zhiyuan still shook his head, "Bincheng Steel Plant is not big enough."

Jin Huaying took a breath and said, "Zhiyuan, there are only a few steel mills in Donghai Province that are larger than Bincheng Steel Mill. Are you talking about the zero-water steel mill?"

"The scale of the Zero Water Steel Plant is OK, but Mr. Jin, your imagination can be expanded a little more."

"Then only Shancheng Steel is left." Jin Huaying was stunned. "Zhiyuan, do you know what you are talking about? Shancheng Steel is a large steel enterprise group second only to Gegang in Donghai Province. Gegang acquired Shangang. Did I hear it wrong? How is this possible? Gegang is a central enterprise, and Shangang is a provincial key enterprise. The property rights are different. Even if we want to acquire it, will Donghai Province let us go?"

"Boss Jin, I'm not talking about the present, but the future. The merger and reorganization of steel companies is the general trend of the future. We just need to prepare now. We can use Bincheng Steel Plant to practice and accumulate experience."

If these words were not said by Lin Zhiyuan, if Lin Zhiyuan was not the assistant director of the large-scale working committee, Jin Huaying would never have believed it.

Shancheng Steel is now doing a thriving business. If it weren't for the administrative order from the top, how could they be willing to be acquired by Gegang?

This is like a fairy tale.

From the perspective of 2000, what Lin Yuan said was indeed incredible. However, after the 2001s, the domestic economy flourished and infrastructure construction was vigorously carried out, which led to the rapid expansion of steel enterprises. Steel mills in various regions entered a golden period of development. Especially after 2010, after China joined the WTO, exports soared, leading to unlimited increase in production capacity of steel mills in various regions. After , the consequences of blind expansion were revealed. Due to the slowdown in domestic economic growth and the intensification of international trade frictions, China's steel production capacity was in excess. In addition, large-scale steel production caused serious pollution to the environment. In order to reduce environmental pollution, promoting industry mergers became an inevitable choice.

Secondly, due to fierce competition and price wars, steel companies are generally facing the dilemma of high production costs, low profits or even losses. Market competition among various companies has led to a decline in the overall efficiency of the industry, which has also become one of the reasons for the merger.

Against this backdrop, the merger and reorganization of China's steel industry is imperative. Since 2016, by the end of 2018, there have been 258 steel enterprise reorganizations and integrations in China, and the integration of the entire industry chain involved in the reorganization has been basically completed.

The top three steel companies in China, Gegang, Hugang and Hangang, have all completed their reorganization. Gegang has merged with Pangang, Shangang and other steel companies that have their own mines. Hugang and Hangang have even merged into a super-carrier company in the steel industry.

On the one hand, mergers and reorganizations have indeed promoted the reduction of overcapacity.

On the other hand, mergers and reorganizations have improved industry efficiency by integrating high-quality resources, increasing capacity utilization and reducing production costs.

As a Gegang employee, Lin Zhiyuan certainly hopes that Gegang can make preparations in advance, complete the restructuring work ahead of time during the period of rapid development, expand its own size, and become the leader in China's steel industry.