Investigation And Evaluation Of The Panzhihua Iron And Steel Restructuring

Panzhihua Iron and Steel Group(Pan Gang ), one of the ten largest steel and iron enterprises, once entered the 50 greatest industrial enterprises in China. To put up the modern enterprise system in such a large enterprise, Pan Gang is faced with many troubles, such as poor profit-making ability of assets, low economic efficiency, high liabilities, irrational organization, huge debts to be paid for, too large and inefficient and so on. I choose the reformation of Pan Gang as the object of study of my dissertation so as to probe into the problems and for solutions by researching its reforming process. So we can draw some inspiration from it, which is significant to set up the modern enterprise system in large and middle-sized SOE and take it for reference to other enterprises that reform after it so that we gain rich experience.This dissertation includes several aspects following mainly:Part I: a brief introduction of Pan Gang This part introduction the developments of Pan Gang, advantages, problems, favorable conditions and disadvantages it faces now and the focus of the work afterwards.Part II: Reforming process in Pan Gang.Chapter One: the reforming framework design in Pan Gang.The aim of the reform is to build up an efficient system of parent company and subsidiaries that work on the basis of assets and to develop as large companies and large groups.The fundamental principle of the reform is to ensure the value and accrual of state assets, paying attention to regulation innovations, management innovations and technology innovations and combing reforming system, re-organization, transformation with tightening up internal management, whole designing, carrying out step by step, transitting stably, probing boldly and breaking through the focal point, dealing with the relationship of transformation, development and stability correctly.The choice of structural organization of the reform : After comparing the advantages and disadvantages of the organization of state companies, limited-liability companies and joint-stock companies, taking the objective external surrounding and concrete condition of Pan Gang into accounts, Pan Gang choosed limited-liability companies with several shareholders as the organization of whole reforming.Designing of legal person management: According to the principle of that organ of power, policy-making body, executive body and supervise body work independently and condition each other with definite authority and responsibility, the legal person management of Pan Gang consists of meeting of f stock-holders, board of directors, managers and board of supervisors. On the basis of conditioning each other, it designed the members of board of directors, managers and board of supervisors, extend of authority and liability and working ways.Chapter Two: Joint stock system transformation enforcement process in Pan Gang's subsidiary factories.In order to gain experience for the whole transformation of parent company-Pan Gang Group in 1993. Panzhihua Steel company, the 19th smeltery and Panzhihua Iron Ore Company, as sponsors, set up Panzhihua Board Ltd. by raising fund orientedly. In November 1996,this company changed oriented raise of fund into public raise of fund and went public at Shenzhen Stock Exchange by reducing stocks. That created three most of Chinese public Ltd. And raise fund up to 85 million yuans. Going public of this company is the first step for Pan Gang to enter capital market.To realize the overseas expansion and accord international market, at second step, Pan Gang Group planned to set up Panzhihua steel and Vanadium Ltd. which contain all assets of Pan Gang Sintering Plant,, Steel Mill, Vanadium Steel factory, Cogging factory, Track and Beam factory, Wire mill, Oxygen, Installation., Power Plant ,Heat and Power Plant, Sale department and Xichang Steel Rolling Mill and 65.12 percent of assets and to go public in Hongkong. For that, Pan Gang group do great amount work such as appraisal of assets, asset retooling, joint stock system transformation and so on. In July 1997,Steel and Vana...