Shenhua Group mulls large-scale regrouping to enhance efficiency

2017-02-16 15:09:00 Policy,  Company sxcoal.com

Shenhua Group, China's largest coal producer, which has launched a series of acquisitions, is mulling larger-scale regroupings to enhance efficiency and competitiveness, according to one insider of the group.


The move was in line with efforts of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), which ordered central government owned enterprises to quicken regrouping steps this year, in order to accelerate consolidation of coal, steel and power businesses, said a source on February 9.


"The number of central government-owned companies will reduce to 100 or less in 2017," officials with the SASAC said earlier this year.


"The acquisition and regrouping are aimed at strengthening competitiveness, downsizing the floated enterprises and improving management structure," said Li Shuguang, an expert of China University of Political Science and Law.


Last year, ten central government-owned firms regrouped into five, while this year we will focus on deep regrouping and core businesses, according to Li Jin, chief researcher of China Enterprises Institute.


China Baowu Steel Group, restructured from Wuhan Iron & Steel Group (WISCO) and Baoshan Iron & Steel Group (Baosteel), managed to reduce investment by some 40 billion yuan and new steelmaking capacity by 10 million tonnes per annum.


"Industries related to transport, infrastructures, energy, commerce, tourism, and information are all probably regrouping targets," Li added.


(Writing by Tammy Yang   Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Editors Recommendations

1 Weekly China coal market news summary (Jun 19-Jun 23) 2017-06-23

China allows coal mines to increase capacity amid price rally China will allow some coal mines to increase capacity, the National Development and Reform Commission (NDRC) said on June 16, as

2 Indian state ports' coal imports down 4.26pct in first 2 mths of FY2017-18 2017-06-23

India's 12 major government-owned ports imported 25.46 million tonnes of coal in the first two months of current 2017-18 fiscal year (April, 2017 – March, 2018), decreasing 4.26% from a year earlier,

3 Shaanxi thermal coal prices rebound on improved demand 2017-06-23

Thermal coal prices bounced back in many areas of Shaanxi, as demand improved while supply tightened after production in Inner Mongolia dropped amid environmental check. Coal miners in Yu

4 Flammable ice pilot production hit new record in South China Sea 2017-06-22

As of 14:52 June 21, China's trial mining of combustible ice in the Shenhu South China Sea, about 320 kilometers southeast of Zhuhai Guangdong, hit a new high production of over 235,000 cubic meters w

5 Thermal coal prices further up at south China ports 2017-06-22

Prices of thermal coal further went up at southern China ports, mainly attributed to increased demand and rising prices at northern ports. Thermal coal prices rose 10-25 yuan/t at local m

6 China State Grid Corp takes 24% of Greek counterpart 2017-06-22

China's biggest power conglomerate State Grid Corporation acquired 24% of stake in Greece's State Grid Company with 320 million euros ($357.3 million) on June 21, state media reported. Th

7 Liaoning to retire 9.05 mln T coal capacity in 1st step this yr 2017-06-22

Northeastern China's Liaoning province plans to kick out 9.05 million tonnes of coal production capacity in the first batch this year, showed a shutdown list released by the provincial government rece

8 China's resilient thermal coal market cheerful but precarious 2017-06-22

China's resilient thermal coal market, though cheerful, may not be sustainable over the months ahead as demand from utilities may face uncertainties while supply may also increase following recent pri

9 Shaanxi completes 1st UHV project for trans-province power supply 2017-06-22

Northwestern China's coal-rich Shaanxi province completed its first ultra-high voltage (UHV) transmission project in June that would help delivering electricity to eastern provinces, China Electric Po

10 China Coal Energy May coal output up 2.9pct on yr 2017-06-22

China Coal Energy Co., Ltd, the listed arm of China National Coal Group, produced 6.76 million tonnes of commercial coal in May, increasing 2.9% year on year and 13.2% from the month before, the compa

Most Read Articles

1 China coke futures surge 4.8% 2017-06-14

The most actively traded September 2017 coke futures on the Dalian Commodities Exchange surged 4.8% or 70 yuan/t on day to 1,518 yuan/t by close of trade on June 14, pushing through the 1,500 yuan/

2 Turkey Apr thermal coal imports drop to 3-year low 2017-06-12

Turkey imported 1.34 million tonnes of bituminous thermal coal in April, dropped 35.9% year on year and 56.4% month on month, the lowest monthly volume since April 2014, showed data from the Turkish s

3 Yancoal gets regulatory approval for $2.45 bln Rio Tinto deal 2017-06-12

China's Yancoal has gained Chinese regulatory approval for its $2.45 billion purchase of Rio Tinto's Australian unit Coal & Allied Industries Limited, the company said in a stock exchange filing o

4 Nippon Steel to set Q2 coking coal prices off spot price indexes 2017-06-13

Japan's biggest steelmaker, Nippon Steel & Sumitomo Metal Corp, has ended quarterly negotiations with Australian suppliers over coking coal prices for April to June and will set quarterly prices b

5 Shanghai rebar falls after 4-day spike on property demand worries 2017-06-13

China's rebar steel futures edged lower on June 13 after a four-day climb amid concern that a slowing property market may dent steel demand in the world's top consumer, Reuters reported.

6 Colombian May thermal coal exports rise 4% on yr to 7.67 mln T 2017-06-13

Colombia exported 7.67 million tonnes of thermal coal in May, rising 4% year on year and 14% from April's three-month low, Platts reported on June 12, citing the data from Colombian shipping agent Dee

7 Japan's trading houses offload thermal coal assets amid climate concerns 2017-06-14

Japanese trading houses including top-ranked Mitsubishi Corp are offloading thermal coal assets on growing concerns about the fuel's environmental impact, in a move also reflecting a shift in their

8 CIL to supply domestic fuel to non-power consumers 2017-06-15

State-owned Coal India (CIL) will continue to offer domestic coal to non-power sectors instead of 50% of the import component this fiscal, the Times of India reported on June 15. The deve

9 Jiangsu Jan-May raw coal output down 14.43% on yr 2017-06-15

Eastern China's Jiangsu province produced 5.2 million tonnes of raw coal in the first five months this year, falling 14.43% year on year, showed data from the provincial Economic and Information Techn

10 Glencore outbids Yancoal for Rio Tinto's Hunter Valley coal mines 2017-06-12

Miner trader Glencore said it had offered $2.55 billion cash for coal mines owned by Rio Tinto in Hunter Valley, Australia, outbidding a previous offer from Chinese-owned Yancoal, Reuters reported on