The steel industry continues to face challenges, with overcapacity remaining a major issue. Despite the government's efforts to address this through various measures, the domestic steel market still shows signs of decline. Since 2010, the industry has struggled to remain profitable due to excessive production capacity. In response, many listed steel companies have turned to non-steel businesses in search of new profit sources. Major players such as Baosteel, Wuhan Iron & Steel, and Shagang have set ambitious goals for their non-steel operations, aiming for more than 30% of group revenue from these ventures.
Beyond profit motives, the development of non-steel businesses also helps diversify company assets. Selling related non-core assets has allowed some companies like Angang, Maanshan, Valin, and Shandong Steel to quickly improve their financial performance. However, the Chinese State-owned Assets Supervision and Administration Commission (SASAC) has urged central enterprises to focus on their core businesses and limit non-primary investments, signaling potential future restrictions on non-strategic ventures in the steel sector.
In 2013, several listed steel companies reported losses, while others relied on asset sales and government subsidies to avoid further declines. Industry experts remain cautious about the outlook for 2014, suggesting that the steel industry is still in a difficult phase. To survive, many companies are turning to diversified strategies, exploring areas such as logistics, trade, real estate, and financial services.
Among the 32 A-share steel companies, almost all have engaged in non-core activities. These often include mineral resources, logistics, machinery, trade, and even real estate. For example, Wugang, Hualing, and Nangang have established logistics and port companies to support their main business. Similarly, Valin Group has ventured into financial services, while Nanjing Iron & Steel has developed real estate projects since 1998.
Industry analysts note that while these moves may seem unrelated to the core steel business, they help maintain capital stability and support long-term growth. The trend of diversification is not new, but it remains a critical strategy for survival in a struggling industry.
Leading companies like Baosteel and Shagang have made significant progress in their non-steel ventures. Baosteel aims for its e-commerce and information sectors to account for 30% of its parent company’s revenue by 2018. Shagang, on the other hand, has set a target of 200 billion yuan in non-steel sales within five years, aiming for international recognition.
Wuhan Iron & Steel has also expanded into food production and logistics, while also developing urban service industries. However, not all diversification efforts have been successful. Some companies have faced criticism for entering unrelated fields without clear strategic benefits.
Experts suggest that diversification should align with the company’s industrial chain to maximize efficiency. While some believe that companies should be free to operate as they see fit, the SASAC has emphasized the need to focus on core businesses and control non-essential investments.
Despite the challenges, non-core assets have become a lifeline for many steel companies. Selling these assets has helped firms like Anshan and Maanshan Steel turn around their financial situations. While this approach may be temporary, it allows companies to stabilize their performance and focus on long-term recovery.
In the end, the path forward for the steel industry remains uncertain. While diversification offers opportunities, it also requires careful planning and strategic execution. As the industry continues to navigate difficult times, the balance between short-term survival and long-term growth will be crucial.
7 Bars Led Grow Light
7 bars led grow lights is a special lamp to provide light for plants. It usually consists of seven light bulbs, each with a different color and wavelength to simulate the spectrum of natural sunlight. This light fixture is widely used in indoor planting and gardening.
The use of the 7 bars full spectrum led grow lights mainly depends on the following aspects:
1. Light time: plants need light for photosynthesis, and different plants have different needs for light. In general, most plants need 10-12 hours of light per day, so 7 bars plant lights are usually set to work 10-12 hours per day.
2. Light intensity: Plants also have different needs for light intensity. Some plants require more light, while others require less light. 7 bars waterproof led grow lightss usually have an adjustable light intensity function that can be adjusted according to the needs of different plants.
3. Distance and Angle: The distance and Angle between the plant and the 7 bars indoor grow light will also affect the lighting effect. In general, the distance between the plant and the lamp should be kept within an appropriate range to ensure that the plant can fully receive the light.
4. Types of plants: Different plants have different needs for light. Some plants need stronger light to promote growth and flowering, while others have lower light requirements. Therefore, when using the 7 bars indoor grow lights veg, it needs to be adjusted according to the type and needs of the plant.
7 Bars Led Grow Light,Led Grow Lights For Indoor Plants,Plant Lamp,Indoor Plant Lights
Shenzhen Pvison Technology Co., Ltd. , https://www.pvisunggrowlight.com