Hebei iron and steel into the loss of LED into five years to become China's first

For the largest domestic iron and steel enterprises in Hebei iron and Steel Group "new head" in courage, is placed in front of him the biggest problem is how to make the cash after taking office in 2014 2015, comprehensive losses overall profit "commitment.

So, Hebei iron and Steel Group announced that its Tangshan and Pohang in South Korea's company jointly set up a new company, entered the domestic market LED. Analysts pointed out that the development of steel enterprises and non steel industry to make up for the main business losses due to the branch of Hebei iron and steel no ground for blame, but enterprises are more dispersed structure, how to integrate the development of the steel industry will be placed in front of a big problem.

Join forces to enter the Korean steel giant LED put five years into China's first

The end of 2013 approaching, Hebei iron and Steel Group announced the Tangshan Chuangyuan Fangda company and Korea ICT company in Pohang jointly set up Pohang Tangshan (Tangshan) new light source Co. Ltd. formally enter the LED industry. This is the Hebei iron and Steel Group in December last year experienced personnel earthquake, the new head of the first investment decision in Yong took office.

Hebei iron and Steel Group and Pohang iron and Steel Group in South Korea, a home is the largest domestic iron and steel enterprises in Chinese, another is South Korea's largest iron and steel enterprises, two steel giant joint cross into the LED industry, and the two sides of the "marriage" full of confidence, are exposed to the LED industry's ambition".

Tang Gang Chuangyuan Fangda company told the NetEase of finance, the new company to reach the final goal of China lighting market ranked first. The South Korean President, Pohang ICT Pohang LED general manager Zhao Fenglai said, the new company will be profitable in 2014, "five years to reach Chinese lighting market ranked first, and even become the world's first LED lighting company".

It is reported that the joint venture total investment of 61 million 260 thousand yuan, jointly funded by the Pohang iron and Steel Co., Ltd. and the management of the Chinese market, the product positioning for energy saving, long life, high efficiency LED lighting products.

The initial design of the project size of 379 thousand sets of annual output value of $207 million. Tang Gang Chuangyuan Fangda company revealed that the new medium-term target to achieve sales revenue of 500 million yuan, Pohang period and the two sides will be needed to invest.

In addition, in early 2012, Tang Gang Chuangyuan Fangda company conducted a one-year research on LED technology, and with the production conditions. According to Tang Gang Chuangyuan Fangda company profile, Tang Gang Chuangyuan Fangda Tang Gang's company is a non steel industry, responsible for the production of electric power equipment, cables, electrical appliances, automation instrument etc..

And according to the data of Pohang ICT open, Pohang began to get involved in the LED industry in the early 2009, it claimed LED lighting production technology is in the leading position in the world, technology patent registration in South Korea 179, technology patents in foreign applications have 58, 2012 is applied to the product patent proportion is as high as 79%.

"Pohang LED in terms of technology in the international forefront, has a number of patents and proprietary technology", "Tang Gang Pohang is in need of Pohang brand and high-end technology; Pohang Tang Gang is Chuangyuan Fangda market share," Tang Gang Chuangyuan Fangda company said.

Hebei iron and steel "new boss" advocated the development of non steel industry losses.

In fact, together with Pohang to enter the LED early in the first half of last year, Tangshan Iron and steel in the planning, and then served as chairman of the Tang Yu Yong, from the first to the subsequent negotiations and signed a letter of intent signed a joint venture contract, participated in. According to sources close to the Tangshan, "the LED industry is an important project in non steel industry in planning".

It is reported that in Pohang and began to talk about LED cooperation as early as 2013 May, in June 3, 2013 the two sides signed a letter of intent, September 12, 2013 signed a joint venture contract.

Data show that in Yong had been in Tangshan office, which served as the Tangganggufen company Ironmaking Factory director, assistant general manager, deputy general manager, general manager of Hebei iron and Steel Group, and served as the general manager, deputy secretary of the Party committee in 2012, director of Hebei iron and Steel Group Tangshan company chairman and general manager.

It is worth mentioning that in December 9th last year, Hebei iron and steel group experienced a number of people, the same day, the Hebei provincial Party committee, the provincial government announced that Yu Yong succeeded Wang Yifang as chairman, Party secretary.

The former head of Wang Yifang left Yong, Hebei iron and steel is about to announce two consecutive years of losses. According to the data sources close to the Hebei iron and Steel Group, founded in 2011 to 2008, Hebei iron and Steel Group, the group sustained profitability, and in 2012, the group's operating income of 250 billion 300 million yuan last year dropped to 247 billion 800 million yuan, net profit from a profit of 2 billion 923 million yuan last year into a loss of 522 million yuan. The source said that although the Hebei iron and Steel Group's financial data is not publicly available, but is expected in 2013 is still a loss.

Yu Yong in the December 9th meeting of the group stressed that the realization of the overall loss in the year of 2014, is the group's largest target and the largest political, is the overriding central task". For Yong, the biggest problem is placed in front of him is how to honor its commitment to make the full implementation of the 2014 turnaround, full profit in 2015, the commitment.

"It is later served as chairman of Hebei Iron & Steel in Yong will develop non steel industry, close to the Tangshan Iron and steel speculation, after Yong was promoted to the position of chairman of Hebei iron and Steel Group, in order to realize losses, will continue in the host during the development of Tangshan Iron and steel non steel industry" strategy.