Interview with this reporter, said Chairman Wang Yifang, Hebei iron and Steel Group steel output ranked first in the domestic front, to avoid duplication, the elimination of backward production capacity, enhance market discourse and internal resources is to promote the four major causes of the current steel industry mergers and acquisitions.

Wang Yifang told reporters: "now everyone says that the domestic steel production capacity reached 650 million or 7 tons, but the NDRC only 3 tons, other capacity are basically their own horse, which is typical of repeated construction, and after the formation of large enterprise groups, to some extent, can solve this problem." According to him, Hebei iron and steel group last year rejected a hot plate in total investment of up to 2 billion yuan coil production line. The rejection of this production line is not due to technical backwardness, nor is it because there is no benefit, but because the Hebei iron and Steel Group has 6 20 million tons of hot plate line capacity. If there is no formation of Hebei iron and Steel Group, only from the perspective of Xuanhua Steel, will be on this project, because only in building materials, profiles, no plate, and the product market is also good.

Wang Yifang believes that the second advantage of mergers and acquisitions in iron and steel industry is to eliminate backward production capacity. That sometimes let the enterprise lack of coordination, the elimination of backward production capacity will not be able to perform, for enterprises to survive, after a large enterprise internal form, can formulate development plans in an orderly manner, the elimination of backward production capacity is relatively good coordination.

Promoting market discourse is the third advantage of industry integration. Wang Yifang told reporters that the Hebei iron and steel group formed more than a year, only last year, leaving some work inside, some strategic factors, the enterprise will save 2 billion 200 million yuan of funds. Taking the purchasing alloy as an example, he explained how the five major Steel Corp affiliated groups raised their bargaining power and reduced their purchasing risk.

The fourth advantage of the integration of steel industry is the optimization of enterprise resources. Wang Yifang admitted that, before integration, competition between enterprises will lead to good technical experience or resources can not be shared, and after the completion of integration, resources can be shared, operating capacity will be the greatest increase.