Baosteel group and Wisco group have been allowed to implement the joint reorganization [ 2016-09-22 ]

In order to promote the healthy development of the iron and steel industry in our country, further promote the structural adjustment of state-owned economy, deepening the reform of state-owned enterprises, improve the modern enterprise system, accelerate the annexation and reorganization in industries with excess capacity, strong support the implementation of the supply side structural reform, and grow stronger, better and larger, "slim body", increase efficiency, to cultivate world-class competitive enterprise group's core objective. Approved by the state-owned assets supervision and administration commission of the state council, Baosteel group and Wisco group implement the joint reorganization, to form a "China Baowu iron and steel group co., LTD.", to operate together to form a platform with world-class technology innovation, the steel industry investment, and capital operation.

Listed companies under Baosteel and Wisco group will also implement the joint reorganization by changing baosteel shares to absorb that of Wisco.

After joint reorganization of Baosteel group and Wisco group, it will be in accordance with the development of high-end, intelligent, greening, service principles, the implementation of the "strong iron and steel business, related industry collaborative" business combination, focusing on the steel industry to make it fine and strong and optimal, leading industry transformation and upgrading, improve global influence, strengthen the related industry’s’ comprehensive support to the development of iron and steel business, to create the most competitive wisdom green steel industry ecosystem.Baosteel and Wisco confirm the strategic target as "to become the world's most competitive iron and steel enterprises, become the most investment value of listed companies" after joint reorganization.

After the reorganization, In various fields such as key products, technology research and development, sales network, business arrangement, purchase management, shear distribution, logistics and other, Baosteel group and Wisco group will deep excavating synergies, which is advantageous to the optimize allocation of resources, reduce duplication of investment, reduce operating costs, promote enterprise quality efficiency. The joint reorganization is in line with the "reduction of capacity" of iron and steel industry, and is helpful to optimize the industrial structure, improve industrial concentration and conducive to balance the internal capacity, integrate different production base and production lines, speed up the elimination and shut down a number of inefficient and invalid capacity. The joint reorganization of two enterprise is also an important measure to deepen the reform of the state-owned enterprises, establish a sound market system and mechanism, will be conducive to push the advantages resource of enterprises to the central, strengthen the business model and management innovation, improve enterprise competitiveness, to focus resources to the development and application of cutting-edge technology, further enhance the technology of the strategy of product research and development ability, gradually formed on the basis of technology research and development advantages of large iron and steel group, in order to promote the international competitiveness and influence of China's iron and steel industry.

Hereafter, Baosteel group and Wisco group will comply with the relevant laws, regulations and regulatory guidance, steadily and actively promote the joint reorganization.

Source:Baosteel News Centre