Research On Reform And Development Of Tonghua Iron & Steel Group

TONGHUA IRON & STEEL GROUP was restructured in the background of the reorganization of state-owned enterprises in Jilin province, it was also one of the crucial restructuring of state-owned enterprises. After a year of corporate operations, what kinds of changes has happened after restructuring of TONGHUA IRON & STEEL GROUP in 2005. This article is comparative analysis of the financial and other situations links TONGHUA IRON & STEEL GROUP before and after restructuring and the existing problems and the measures to be taken.First, the implementations and the restructuring programs of TONGHUA IRON & STEEL GROUP.The restructuring programs implemented are as follows:1,Divesting programTONGHUA IRON & STEEL GROUP in accordance with the documents of the relevant and Jilin provincial government, and divided the main bodies of the industry in conjunction with enterprise development strategies and restructuring. The main business of TONGHUA IRON & STEEL GROUP was restructured and established by Jianlong Limited and co-sponsored corporation and Jilin trust and investment corporation in accordance with the "Company Law" and relevant laws and regulations.Separation of secondary units will take all the restructuring, retreat into shares of state-owned capital or all. Fully considering of the profitability of restructuring units, TONGHUA IRON & STEEL GROUP introduced of natural persons or legal entities to participate in external enterprise restructuring.2,Settlement planTONGHUA IRON & STEEL GROUP was restructured to multiple investors holding joint-stock enterprises according to provincial government, former employees and labor relations status of state-owned enterprises were conversed completely. The former main enterprises and employees labor relations were terminated labor relations according to law and pay the compensation, the divert staff of the restructuring enterprises should be signed contract on an equal and voluntary basis. The people who find another career, a one-time economic compensation should be paid by Original principal business.3,Asset disposal programs implemented in TONGHUA IRON & STEEL GROUPAsset Pricing, loss instead, a change of ownership and other matters related to state-owned capital and financial management involved in the restructuring process of segregation should be reviewed by Group, submitted to the relevant departments and the reunification process in accordance with relevant provisions of the financial requirements and documents of Jilin province.4,Deal with the bond debt in TONGHUA IRON & STEEL GROUPThe Group should do a good job of cleaning up the debts of the restructured enterprises, and to carry out the necessary financial audit, notes implementation of the debtor the opportunity to prevent the use of restructuring dodging debts In accordance with company policy.TONGHUA IRON & STEEL GROUP should determine the type of company and the principal investment., and the definition and allocation of shares in property rights, establish a standardized corporate governance system, and deepening internal reform, strengthen internal management through the implementation of the program.Second, comparative analysis of TONGHUA IRON & STEEL GROUP before and after restructuring.We can see that the capacity of debt repayment, improve efficiency in the use of all assets Increase, the change in the price payment is become smaller, and the profitability is enhanced. After the reform, TONGHUA IRON & STEEL GROUP has established the modern property rights system, achieved diversification of investment entities, established a standard of corporate governance structure, the parent company building management system, and strengthened the management function, established a new management system and mechanism.Third, the problems of TONGHUA IRON & STEEL GROUP and the reasons after corporation restructured.1,TONGHUA IRON & STEEL GROUP is a large-scale, less net assets, corporate debt, a larger total and per capita output, but the Group is low relative size , low profitability enterprises, poor profitability.2,The Group implement new technologies, new technology, new equipment,but the commissioned officers are low quality., control of some areas of new technology, new technology, new equipment is low impact on the effectiveness of the Group of input and output.3,There are many companies in different cultural and evolved in a different direction has organized TONGHUA IRON & STEEL GROUP, the profitability of the business enterprises of different composition. In the new assets conditions, in order to form a strong cohesive group of companies also need to work together for a long time. 4,Products of TONGHUA IRON & STEEL GROUP are fewer species, low quality, the products are mostly low-end products, and the cost of the product is relatively high. So TONGHUA IRON & STEEL GROUP is less competitive.5,Original base default retirement medical workers, retired workers, the insurance issue was not completely resolved.Fourth, the Countermeasures of TONGHUA IRON & STEEL GROUP after restructured Analysis1,Support the implementation of key projects to further accelerate the pace of structural adjustment and concentrate on promoting the construction of key projects, strict control of investment by investment plans.2,Integration with the enterprise culture as a driving force to improve corporate cohesion.3,Implement a variety of cost-based strategy to enhance market competitiveness.4,To strengthen the focus on marketing management, tap the potential effectiveness.5,Implement the readjustment of the product mix, increased sales of new products, improve the technological level and increase the development potential6,Combine the objectives with interests of enterprise employees to improve the self-awareness of development and promote the overall development.7,improvement of the social security system to ensure retired workers insurance.In short, the restructure of TONGHUA IRON & STEEL GROUP is Basically successful, but because of backward technology, and other issues left over from the issue of state-owned enterprises, Group should further deepen reform, and consolidate the results of restructuring.