The State encourages cross-industry integration of carbon companies

It is hoped that leading enterprises in the steel, non-ferrous metals, petrochemical and other industries will bring out several large group national development and reform commissions to clearly state in the “11th Five-Year Plan Period China Carbon Industry Development Outlook” recently released, and encourage the use of capital markets, cross-industry, and cross- Regional integration of existing carbon companies. According to relevant officials of the National Development and Reform Commission's Industrial Policy Department, leading companies in the steel, non-ferrous metals, petrochemical, and other related industries can participate in the restructuring of carbon companies and strive to quickly form several competitive large enterprise groups.
According to relevant persons from the Department of Industry Policy of the National Development and Reform Commission, the formation of large-scale carbon companies will help control new production capacity, rationalize the company's production capacity, markets, and resources; facilitate the division of specialization of products and realize structural adjustment of varieties; The scale of production, large-scale and modernization of equipment, and elimination of backward production capacity are conducive to curbing disorderly market competition. Therefore, carbon companies should combine the restructuring of state-owned and old enterprises, accelerate the reorganization of enterprises, change operational mechanisms, increase industrial concentration, adjust industrial structure, avoid redundant construction, optimize industrial distribution, and enhance the competitiveness of enterprises. To break the boundaries of the industry, use the capital market to integrate existing carbon companies across industries and regions.
It is understood that the restructuring of Jilin Carbon Group Co., Ltd. and Fangda Group's reorganization of four carbon companies, including the Fushun Carbon Co., Ltd., has achieved initial results.
The National Development and Reform Commission predicts that the market demand for the carbon industry will remain very broad for some time to come. During the “Eleventh Five-Year Plan” period, the market demand for China's carbon industry will shift from a sustained high-speed growth to a moderate steady growth, and the average annual growth rate is expected to be about 4% to 5%.
According to reports, during the “10th Five-Year Plan” period, the carbon industry in China still has a series of outstanding problems such as extensive growth mode, weak corporate innovation capability, unreasonable product structure, excessively fast production capacity expansion, and weak corporate competitiveness. On the one hand, low-end products such as ordinary power graphite electrodes, electrode pastes, aluminum anodes, and cathode carbon blocks have excess capacity, and the market supply exceeds demand; on the other hand, high-tech and high-value-added products such as large-scale ultra-high-power graphite electrodes There is a considerable amount of gaps in nuclear graphite, aerospace graphite, specialty graphite and carbon-graphite composite materials in various fields, and it is necessary to rely on some imports to meet demand. Therefore, during the “Eleventh Five-Year Plan” period, the carbon industry should accelerate the integration, increase investment in technological development of enterprises, improve the ability of technological innovation, and make energy-saving and consumption-reduction and raising the level of environmental protection as a prerequisite for development.

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