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Sunday 22 March 2009
China chooses car and steel makers to dominate
China will concentrate more power in the hands of fewer automobile and steel companies, the government has said in unveiling its most concrete plans yet for reform of the two industries.
BEIJING: China will concentrate more power in the hands of fewer automobile and steel companies, the government has said in unveiling its most concrete plans yet for reform of the two industries.
The State Council, or cabinet, said it would push five steel makers and two or three car companies to take dominant positions in their respective industries.
The cabinet, in statements posted on the government Web site Gov.cn, also named which companies China would encourage to lead the consolidation.
Among automakers, China called on F.A.W., Dongfeng, Shanghai Automotive Industry Corp. and Changan to make acquisitions nationwide.
It said that Beijing Automotive Industry, Guangzhou Automobile Group, Chery Automobile and China National Heavy Duty Truck should spearhead regional efforts.
In steel, Baosteel Group, Anben Iron & Steel and Wuhan Iron & Steel were tapped to be the three biggest players, producing 50 million tons or more a year.
The government said that more than 45 percent of steel output in China, the world’s biggest steel producer, should come from the top five companies.
China first announced stimulus plans for its steel and auto sectors in January as part of a support package for industries identified by the government as key to economic growth.
The plans have offered some assistance to help companies weather the financial crisis, including tax cuts and consumer subsidies, while also laying out longer-term objectives for industrial restructuring.
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China chooses car and steel makers to dominate
Reuters
22 March 2009
BEIJING: China will concentrate more power in the hands of fewer automobile and steel companies, the government has said in unveiling its most concrete plans yet for reform of the two industries.
The State Council, or cabinet, said it would push five steel makers and two or three car companies to take dominant positions in their respective industries.
The cabinet, in statements posted on the government Web site Gov.cn, also named which companies China would encourage to lead the consolidation.
Among automakers, China called on F.A.W., Dongfeng, Shanghai Automotive Industry Corp. and Changan to make acquisitions nationwide.
It said that Beijing Automotive Industry, Guangzhou Automobile Group, Chery Automobile and China National Heavy Duty Truck should spearhead regional efforts.
In steel, Baosteel Group, Anben Iron & Steel and Wuhan Iron & Steel were tapped to be the three biggest players, producing 50 million tons or more a year.
The government said that more than 45 percent of steel output in China, the world’s biggest steel producer, should come from the top five companies.
China first announced stimulus plans for its steel and auto sectors in January as part of a support package for industries identified by the government as key to economic growth.
The plans have offered some assistance to help companies weather the financial crisis, including tax cuts and consumer subsidies, while also laying out longer-term objectives for industrial restructuring.
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