Accelerate the pace of the strategic restructuring of non-ferrous metals industry

"Facing the financial crisis, non-ferrous metals industry,aluminum, lead, zinc and other metals industries, a
the industry looked forward to the revitalization plannumber of important strategic restructuring. Speeding
introduced at an early date." Recently, Zhang Xiaojun,up the Aluminum Corporation, Jiangxi Copper,
general manager of Chinalco president's Office toldTongling Nonferrous, Daye Nonferrous, Jinchuan
reporters. Following the State Council executiveGroup and other major domestic copper between
meeting examined and approved in principle theenterprises restructuring; to the aluminum core,
automobile industry and steel industry, afterthrough the restructuring of the industry further
adjustment of the revitalization plan, as with theenhance the aluminum industry concentration. Support
infrastructure and manufacturing sectors closelyGold Lingnan, Guangxi Nonferrous, Yunnan
related to the revitalization plan almost certainMetallurgical Group, Hunan Nonferrous Metals Holding
non-ferrous metals industries. February 11 "China'sGroup, silver companies, the integration of color in
Sankei Shimbun" reporter by the Department learnedthe region, respectively, lead and zinc mining
from a source with the steel and automobile industrycompany. On this basis, further the formation of
revitalization plan is similar to the revitalization oflarger enterprise groups.
non-ferrous metal industry, the focus also includeNon-ferrous metals analyst at First Capital Securities
strategies to accelerate industrial restructuring,giant Guoxian that industry leaders can use this
enhance independent innovation capability andopportunity for the revitalization plan and related
vigorously develop the circular a few aspects ofsupporting, bigger and stronger through mergers and
economic and other.acquisitions to solve the problem. Now is the best
Three aspects of deep-seated problems demandingopportunity for industry consolidation. From the
prompt solutionmarket mechanism in terms of self-development,
This reporter has learned that China's currentcorporate merger and reorganization will naturally
non-ferrous metal industry is mainly of the followingoccur, a considerable number of small enterprises will
deep-rooted problems must be resolved. First, thebe eliminated.
excess capacity; second, intensive industries are notAs for the elimination of backward production
highly integrated enterprise strength of the weak;capacity, in recent years, countries have been
third, high dependence on foreign raw materials, theprogressively implemented. But the pace slightly too
lack of international pricing right to speak.slow. Metal industry analysts Zhangzhi Zhou pointed
With aluminum, for example, excess productionout that currently, industrial revitalization planning
capacity of 350 million tons, backward productionshould be introduced more specific measures, forced
capacity has not been fully eliminated, there are aout rewards and punishments in parallel. On the one
number of projects under construction is about tohand improve the technical indicators, on the one
create one million tons capacity. By the financial crisis,hand to develop a better exit mechanism, such as to
copper, aluminum, lead, zinc, nickel and other majorbe out of business a certain degree of financial
non-ferrous metal manufacturing enterprises aresubsidies, such as the backward production capacity
facing consumer spending is shrinking, demandwith the replacement of advanced capacity.
sluggish product prices to drop sharply, inventoriesIndustry rebound until the second quarter after the
increased rapidly expanding range of cut-off cut,For the 2009 non-ferrous metal industry trends, Bank
benefits of serious decline, liquidity is extremelySecurities analysts believe the overall situation in 2009
tense, the passive situation of production andwill not be very good, even if the warming is also the
management difficulties.initial pick up, will not be price spikes. Signs of
It is widely believed that if countries do not takerecovery at least until the second quarter, even after
effective measures to reverse the unfavorablethe second quarter to show an overall perspective, it
situation, the expected first half of 2009 non-ferrousshould be running at the bottom of the first period of
metals industry, the situation will be more difficult, atime, then there appears the initial warming situation.
considerable number of key enterprises in theDevelopment and Reform Commission held in the
production of non-ferrous metals will be difficult tononferrous metals industry, the preparation of the
sustain.revitalization of the planning seminar, participants are
Non-ferrous metals industry to speed up themostly that: Industrial Development planning must be
strategic restructuring oftreated differently, there is pressure to maintain and
Non-ferrous metals industries to revive plan toshould not be engaging in "GSP." To increase in line
promote enterprise mergers and reorganizations, andwith national industrial policies and investment system
enhance industrial concentration, eliminating thereform regulations, which represent advanced
backward, the rational allocation of resources as aproductive forces, support for large-scale backbone
main focus.enterprises, embodying keep pressure focused
This reporter has learned that the Government willpolicy-oriented, and as soon as possible measures
introduce specific measures to speed up the copper,were implemented.