Archive for Merger and Reorganization
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The sustainable development strategy for China's cement industry is part of the social sustainable development strategy. China is one of the main markets for the production and consumption of cement in the world. In 2005, China had a cement output of 1.064 billion ton, up 9.69% than 2004. In 2006, the Chinese cement production still stay within its contraction period and is most likely to grow slower than GDP, but is the investment is fixed assent can keep a steady growth, the demand for cement is still able to reach 1.12~1.14 billion ton.
The global coating manufacturers are constantly developing towards collectiveness, large-scale and specialization in order to win the fierce competition while such objectives can be achieved by merger, reorganization as well as integration. Coating industry featured as low-technical entry, there are now about 10 000 coating companies in China, and the industry lacks well-known brands, price are in disorder, industrial criterion needs to be worked out and product quality is uneven, therefore, it is inevitable for China's coating industry to carry out merger & reorganization and integration.
When recalling the changes of the past few years, the determination of the Chinese government to transform the telecommunications industry is plain to see, as are the results it has achieved. In 1998, the segmentation of China Telecom, known as the "dinosaur", began to be discussed. At that time, this company monopolized almost all telecommunications business such as fixed and mobile telephones, satellite communications and paging services. Consequently there were frequent complains of poor service and inadequate supplies.
On December 11, 2001, the first day of China's entry to the WTO, the plan to segment China Telecom was announced. This was the second plan of its kind since 2000, and even more stringent. It entails China Telecom's capital and equipment in 10 northern provinces merging with two other Chinese telecommunications enterprises( China Netcom Corporation Ltd., and China Jitong Netcom Corporation Ltd.), to form the China Network Communications Group Company( China Netcom). China Telecom's southern entities will be reorganized into a new company that will retain the name "China Telecom Group Company".
The idea that China first began to deal with the challenges posed by the WTO in 2001 is a misconception, several years particularly within certain major industries, such as agriculture, finance ( banking, insurance, securities), the automobile industry, and telecommunications.
Profit shrinking is the fundamental reason. In the first quarter of 2005, profits of automotive industry decreased about 10 billion yuan year on year, down by 60%. Influenced by the stagnation of automotive assembly industry and the rising of steel price, it is the first time in the past ten years that the profit has declined.