Iron and steel industry downturn companies change

Recently, Wuhan Iron and Steel Group, which has become a focus of attention due to raising pigs, has recently established Wuhan Iron & Steel Group Logistics Co., Ltd., intending to integrate its logistics resources including third-party logistics, ports, warehousing, logistics parks, etc. 100 million yuan has become the pillar industry of the group.

Recently, Wuhan Iron and Steel Group issued an external news that its Wuhan Iron and Steel Group Logistics Co., Ltd. was officially unveiled.

Wuhan Iron and Steel Group stated that it has carried out a new round of integration of the logistics industry of the Group, which will integrate the logistics company with the Port Company, and use Wuhan Iron and Steel Group Logistics Co., Ltd. as a platform to reconstruct the third-party logistics, ports, warehousing and freight transportation through integration. Passenger transport, automobile overhaul, logistics park and other logistics sections.

According to reports, the total assets of the newly established Wuhan Iron and Steel Group Logistics Co., Ltd. include six major terminals such as Zhouwu Port in Zhejiang Province, 200,000 square meters of self-owned warehouses, 1,600 sets of various vans and special vehicles, and construction machinery. It is estimated that by 2018 The total sales income reached 10.6 billion yuan, becoming one of the pillar enterprises of the 10 billion yuan in related industries of WISCO.

“Wugang Group is second to none in Central China, and its own customer resources are very rich. The central government-owned background financing and supporting benefits are greatly facilitated, so there is hope that the related 10 billion yuan target plan can be realized.” Xiu-Ping Liu, Chief Analyst, Nishimoto Shinkansen On the "Daily Economic News" reporter said.

It is understood that in the current Wuhan Iron and Steel's industrial structure, the main iron and steel industry as the core, overseas mineral resources development, international trade, high-tech, circular economy, urban services and other major related industrial clusters as the supplement. In 2012, the total profit of Wuhan Iron and Steel was 3 billion yuan, and only logistics companies provided 120 million yuan of profits, which became a strong support for the main industry.

As steel's main business growth space is limited, more and more steel giants are expanding into the logistics industry.

In 2011, headed by Jiangsu Shagang Group, the Zhangjiagang Qianlong Iron and Steel Logistics Park jointly established by domestic and foreign steel manufacturing and distribution companies was officially established with a total investment of nearly 30 billion yuan. It is intended to build the country's largest steel supply chain logistics park.

Coincidentally, Anshan Iron and Steel Group took important steps in the development of the steel logistics park in March 2013, holding the Guangzhou Nansha Iron and Steel Integrated Logistics Park Co., Ltd.

“Conditional companies will try to find value-added space outside the industry chain.” Zhang Lin, a researcher at Lange Steel Information Research Center, told the reporter of “Daily Economic News”, “There is no real improvement in the downstream demand of the main steel industry, and the sales volume will not go up. The cost will be reduced, and the operating efficiency will not change significantly. The expansion of the non-steel business will select the right timing and market. If it is successful, whoever is ahead will have the market and the future."