According to MIIT, the merger and reorganization of the metallurgical industry will not have significant progress in the coming years. The concentration of the market dictates the need to form a group of several large national manufacturers of steel, but this is quite difficult, while some companies in the same area are ready to unite with each other in order to achieve success.
Thus, the government will use the opportunity to earn a reputation by pursuing a balanced policy. MIIT also believes that the merger and reorganization of metallurgical objects should follow market mechanisms, as well as prepare the metallurgical industry for such a step. Local self-government still plays a leading role in regional reorganization.
Metallurgical enterprises that comply with the standards of the MIIT relating to environmental issues, the use of modern technologies, product quality and production security will be supported by interregional mergers, reorganization and technological modernization in order to optimize the industrial structure and regional distribution.
In relation to metallurgical enterprises that do not meet the standards of MIIT, economic measures will be used, such as increasing the coefficient in the pricing of electricity, legal restrictions, reducing lending and loans to force them to leave the business.
