At the end of May and beginning of June this year, China's steel industry made another heavy news: China Baowu reorganized Masteel Group.

After China's steel industry launched the "overcapacity control war", the first joint restructuring "model" was the combination of Baosteel and Wuhan Iron and Steel. This "first case" also lived up to expectations and launched the "head cannon" with outstanding performance. Now, after Baowu, there is "BMW", what kind of "new chess eye" will the "game" of the joint restructuring of China's steel industry have?

The "BMW" that came naturally

The official message release sent by China Baowu to reporters said: "China Baowu has reorganized Masteel Group and will build a 100 million-ton steel group. ”

China Baowu said that this restructuring will help promote the healthy development of China's steel industry, further promote the structural adjustment of the layout of the state-owned economy, implement supply-side structural reform, is an important measure to accelerate the merger and reorganization of overcapacity industries, meet the objective requirements of "serving the national 'Yangtze River Economic Belt' strategy and strengthening the coordinated development of regional economy", and is a key measure to cultivate a world-class enterprise group with international competitiveness.

China's Baowu strategic plan clearly states that it will take "becoming a leader in the global steel industry" as its vision and strive to build "100 million tons of Baowu". On the one hand, the restructuring of China Baowu and Masteel Group will drive Masteel Group to achieve leapfrog development, strengthen the state-owned economy of Anhui Province, promote the agglomeration and development of steel and related industries, promote the transformation and upgrading of the industrial structure of Anhui Province, and achieve higher quality development.

China Baowu is jointly reorganized by the former Baosteel Group Co., Ltd. and Wuhan Iron and Steel (Group) Company, with a steel production capacity of 70 million tons, ranking first in China and second in the world, and is China's most modern and competitive steel complex, with total assets of 711.8 billion yuan in 2018, crude steel output of 67.25 million tons, ranking 162nd in the Fortune Global 500.

Ma Steel Group, located in Maanshan City, Anhui Province, is a large-scale steel complex in China, authorized by the Anhui Provincial Government. In 2018, Masteel Group had total assets of 97.004 billion yuan, crude steel output of 19.64 million tons, operating income of 91.8 billion yuan and total profit of 8.945 billion yuan. Masteel Group has a supporting production scale of 20 million tons of steel, forming four major steel production bases of Masteel Co., Ltd., Changjiang Iron and Steel, Hefei Company and Wharton Company.

In fact, the gestation period of "BMW" cooperation has been nearly 20 years. As early as the beginning of this century, Baosteel at that time implanted the operation long system, one of the excellent management "genes" of modern steel enterprises, into the production lines and workshops of Masteel in the way of "grassroots management project export". This advanced fusion model, which started with "software", was a major initiative at the time, and was called "the common language of cooperation" in the industry. Later, Baosteel and Masteel also signed a strategic alliance framework agreement to complement each other in terms of product varieties and structures. Strengthen communication and coordination in the field of corporate strategy and planning to promote the healthy development of enterprises. Today, from loose to close, from alliance to reorganization, "BMW" has finally come together, which can be described as "a natural success".