One of the important revelations brought about by the restructuring of Dow Chemical and DuPont is that, in the event of a downturn in the industry and a bottleneck in the development of enterprises, the chance of joining together to find a way out is even greater. In recent years, the United States has not had enough economic growth, and many industries are in a downturn. Dow Chemical Company and DuPont Co., Ltd., two chemical giants, also performed at a mediocre performance. Investors have for many years issued calls to focus on rapid business development. Under this background, the return of companies to industry and the tilt to high-value areas have become an inevitable choice. The most important thing is that the strongest people have survived centuries and that the most important point is to dare to be good at taking the lead in the historical transition. Dow Chemical and DuPont are the strongest companies in the chemical industry in the world. However, the economic environment is not good, and the strong will inevitably fall into the “difficultiesâ€. In fact, with Dow Chemical's and DuPont's strengths and family backgrounds, maintaining the status quo and stabilizing the word may not be the same. However, the two giants reviewed the situation and responded to the expectations of investors and stakeholders. They merged the two giants before they were merged and split into sub-sectors to achieve complementary advantages and resource sharing. This undoubtedly requires tremendous courage and courage. At present, the reorganization of enterprises in the global chemical industry has become a general trend. Judging from the situation in China, the domestic enterprises' joint reorganization has been included in the overall plan for the reform of state-owned enterprises. The “joint†has become the main tone of the merger and reorganization of the central enterprises. “Combined†has been the general direction of the reform of the central enterprises, “a mature one, a reorganized one†The policy will not change. Since the beginning of this year, the intensity of the integration of central enterprises has gradually increased, and the pace of corporate alliances has accelerated significantly. It has become common practice for companies to merge similar items and integrate superior resources to strengthen their main industries. In terms of cross-border mergers and acquisitions, the pace of Chinese companies has also accelerated in recent years. For example, China National Chemical Corporation has successively acquired France's Andesu and Italy's Pirelli . The former successfully expanded the business of Adisseo to the Asia-Pacific market. The latter took high-end tire manufacturing technology into its pocket and significantly improved its management capabilities and international operations. The truly integrated and coordinated development has provided precious experience for the globalization of Chinese chemical companies. At the same time, China's chemical companies are generally smaller, scattered, and more complex than the international community. The problems of redundant construction, overcapacity, and excessive competition are highlighted. In order to optimize resource allocation, reduce production costs, increase labor productivity, and speed up technology research and development, it is often impossible for a single company to rely on it. The strong must still form a coalition, and the weak need to form a joint force. A large number of SMEs in China should embark on the joint road to achieve the goal of forming core competitiveness, grasping market discourse rights, expanding market share, and obtaining greater economic benefits. As for this kind of alliance, it is accomplished through the direct merger of enterprises, or through the establishment of joint venture companies or strategic alliances. The path can be rich and varied. In addition, companies that have mastered new technologies or advanced technologies to restructure traditional technology companies and use the capital and infrastructure advantages of traditional companies to promote the application of new technologies should also be reflected in corporate alliances. Linear Shafts,Cnc Machining Lathe Parts,Diamond Alignment Pins,Internal Grinding Machining JING SUNG Precision CO., , https://www.zjcncmachining.com
Is merger and reorganization the only way for Chinese companies to break through?