Research On The Light Asset Operation Of Delong Steel

Due to the global financial crisis in 2008 and severe overcapacity in the steel industry,steel companies were struggling to operate,forcing some to shut down or cut production.In 2015 the ministry released the steel industry adjust policy draft,points out that in 2025,the crude steel production of the top 10 steel companies accounted for no less than 60% across the country,formed 3-5 large steel groups with strong competitiveness in the world,and a number of leading enterprises in regional market and market segment.Due to severe overcapacity in the steel industry,low industrial concentration and poor profitability of steel enterprises,it is imperative for the steel industry to consolidate or be integrated.Steel prices soared in 2016 and 2017,and steelmakers’ profits soared,Some steel companies are still losing money or struggling under such good conditions,But if it is merged or restructured,the asking price is very high,which will bring some resistance to the merger and reorganization of the steel industry,So in this case,merger and reorganization cannot be the only choice,we should broaden our thinking and adopt more flexible and applicable methods,such as: light assets operation,hosting,management of shares etc.Now many industries are adopting the "light asset operation" model,more typical is the fast hotel industry.The customers of the express hotel are consumers,and the brand of the hotel is a good "light asset".But the steel industry’s customers are mostly unit users,and it is hard to replicate the "asset-light operations" of other industries completely in the steel industry.The theory of "operation with light assets" in the steel industry lags behind the practice of enterprises.Based on this,this paper studies and discusses the application of "operation with light assets" in the steel industry.The "asset-light operation" of the steel industry is to gain certain benefits through the management output of the target enterprises,and gradually understand the situation of the target enterprises through management.,including key risk points such as whether capacity is reduced,eliminated or relocated.After a thorough understanding of the target enterprise,invest in the target enterprise step by step,from 10% to 20% to 30% to over 50%.In this way,the gradual approach,with less investment,less risk and thorough understanding,can be regarded as a sound way of merger and acquisition.It can be said that "asset-light operation" is the prelude and overture to the merger and reorganization of the steel industry.Based on the background and characteristics of the steel industry,this paper analyzes the steel situation at home and abroad.to conduct an in-depth study on "asset-light operation" in other industries,to summarize the core competitiveness of delong steel,to analyze the difficulties and problems faced by "operation of light assets" of delong steel,to formulate procedures and measures for "operation of light assets" of delong steel.It is expected to play a guiding role in the scale expansion strategy of delong company and provide some useful references for other steel enterprises.