Coal industry overcapacity in China

Date:2015-11-01 View(s):2145 Tag:carbon steel pipe manufacturing, ERW steel pipe manufacturing, Pipe Fittings Manufacturing

Coal industry overcapacity lead to the largest coal enterprise---Shenhua is starting to transform. In the future, Shenhua is going to focus on nuclear power. In October 28, 2015, the General Manager of Shenhua Group has annouced this decision in International Coal Summit 2015.

Affected by the economic slowdown, the total energy consumption control and other factors, the coal industry has a serious excess capacity. Shenhua coal industry restructuring and development of nuclear power and the situation is not unrelated to the overall downturn. According to the thrid financial report of Shenhua, the sales quantity and price is declined which has seriously influenced the profit of the company. The coal industry is on the occasion of the winter which lead to Shenhua's transformation. The General Manager of Shenhua promised that the company pass three " Five-Year Plan" to build a world-class nuclear energy supplier.

With the end of May this year, China Power Investment Corporation and the State Nuclear Power Technology Corporation merged to form the National Power Investment Corporation, China Guangdong Nuclear Power Group with, China National Nuclear Corporation formed thereon China Nuclear Power (601 985) the three pillars of market structure, the three are in possession of nuclear power operating license and get a controlling stake in nuclear power plant project. Nuclear power projects stable and lucrative benefits to attract parties to come, including the China Nuclear Engineering and Construction Group, Huaneng Group, Datang Group, the company hopes to get China fourth nuclear power license. Shenhua Group to join, is bound to make this battle increasingly brutal.

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