SWOT ANALYSIS OF MAANSHAN IRON & STEEL

Description
SWOT ANALYSIS OF MAANSHAN IRON & STEEL

Maanshan Iron & Steel

Parent Company

Maanshan Iron & Steel Co. Ltd

Category

Iron & Steel

Sector

Industrial products

Tagline/ Slogan

-

100% production to sales ratio and a 100% payment collection ratio for USP steel products

STP

Segment

Steel plates, section steel, wire rods, train wheels

Construction, automobile, bridge-building, machinery businesses and Target Group petroleum transportation

Positioning

One of the largest iron and steel producers and marketers in the PRC

SWOT Analysis

1. Output of pipeline steels, automobile plates, home electrical appliances plates and vehicle wheels amounted to approximately 550,000 tonnes, 820,000 tonnes, 1,210,000 tonnes and 200,000 tonnes respectively 2. Implementation of the business appr oach “strengthening management innovation, enhancing cost reductions and improving efficiency” 3. Company adjusted its production and operating mode on a timely basis & ensured the smooth operation of the Company 4. Progress is made in the development of new products, including high-power locomotive wheels and electric multiple unit wheels Strength 5. Strong presence in the industry owing to its operational efficiency

1. As a result of a weakening demand for steel and an increase in steel production, there has been an oversupply of steel affecting prices Weakness 2. Decrease in Net profit and earnings per share is a concern

Opportunity

1. China is still going through the industrialization and urbanization process, the consumption of steel products will remain high during this

process 2. The use of steel by high-speed rail trains, urban rail transit systems, marine engineering, manufacturing of high-end equipment as the focus of development under the “Twelfth Five -year Development Plan for the Iron and Steel Industry” 3. Strengthening balanced and stable production to ensure the economic operation of various systems

1. Production costs of iron and steel enterprises can exceed the price increase in steel products in the domestic market 2. The financial crisis has a far-reaching impact, characterized by the slow process of economic recovery 3. Due to the impact of China’s control policies on the iron and steel industry, pressure is mounting over the availability of cash needed for Threats the production and operations by iron and steel enterprises

Competition

1. ArcelorMittal 2. Shougang corporation Competitors 3. Baosteel Group Corporation



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