China Aluminum implements reforms to increase efficiency

As the leader of China's non-ferrous metals industry, China Aluminum (10.50,0.06,0.57%) was once a big profit company. However, due to the international financial crisis, aluminum prices “highly plunged” and Chinalco was immediately in a loss-making mud.

Chinalco resolutely chose drastic reforms: reduce management institutions, reduce management staff by nearly 30%; implement a new strategic management and control type of management, subordinate enterprises directly to the market; expand business chain, accelerate the development of mineral resources industry; to include private enterprises in All advanced companies within the company learn from the benchmark.

The reform has allowed Chinalco to take off. "Last year, we achieved an overall annual profit," said Xiong Weiping, general manager of Chinalco.

Deepening the reform of institutional mechanisms is the key to enhancing the vitality and competitiveness of central enterprises.

Some experts pointed out that only through management innovation to solve problems in state-owned enterprise management, such as obsolete concepts, inactive mechanisms, complicated institutions, and backward technology, can efforts be made to increase the efficiency and market competitiveness of state-owned enterprises, and further deepen the reform of state-owned enterprises. At the same time, it will consolidate and expand the reform results.