the industry
#1
Even if the reorganization and integration of the industry is an expansion of the upstream and downstream industries instead of eliminating backward production capacity, the more the production capacity will be eliminated. First, the concept of local political achievements and local interests at work. In order to pursue economic growth in various places, some4 foot by 8 foot plastic deck indiscriminate projects are being built across the country and electrolytic aluminum is also one of them. In addition, local governments do not like local resources to go out to the province, especially the power resources.
While building related energy projects, the related enterprises are required to build projects locally to match these resources. Driven by local interests, some places are still accelerating the construction of electrolytic aluminum projects and even give policy support in areas such as land acquisition, taxation and preferential tariffs. Some enterprises snap in floating deck also use "construction and then approved" and other means to build projects to make the aluminum industry supply exceeds demand, the industry fierce competition, the market price hovers low, the contradiction between corporate profitability is more prominent, difficult to promote the merger and reorganization of enterprises . Second, the aluminum industry is generally losing money.
Large-scale enterprises are unwilling to implement mergers and acquisitions if they can not see any profit. At the same time, due to the liberalization of the market 84 Lumber Fencing Materials economy, some large, powerful and resourced groups prefer to invest in new construction rather than extend the industrial chain through mergers. Thirdly, in implementing capacity integration, the state encourages the electrolytic aluminum industry to expand upstream and downstream. In order to reduce costs, the integrated management mode of coal, electricity and aluminum has become the preferred choice for electrolytic aluminum enterprises, and many power generation enterprises or coal mining enterprises have joined Aluminum industry, resulting in further disorganization of aluminumDeck Wood Non Splinter capacity expansion.
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