Reasons for the closure of Xinda Iron and Steel Group

Reasons for the closure of Xinda Iron and Steel Group: irregular management, broken capital chain, declining market demand and the influence of environmental protection policies.

1. Irregular management: Xinda Iron and Steel Group did not establish a sound management system and internal control system during its expansion, which led to unbalanced operation and increased operational risks.

2. Broken capital chain: Xinda Iron and Steel Group borrowed a lot of money for scale expansion and investment development in the process of expansion, but in the process of increasing downward pressure on the economy, the enterprise capital chain broke and could not bear the debt pressure.

3. Decline in market demand: With the intensification of market competition and oversupply, the market demand of iron and steel industry has gradually declined, and the sales of products of Xinda Iron and Steel Group have encountered difficulties and the income has declined, which has led to the deterioration of financial situation.

4. Impact of environmental protection policies: The continuous strengthening and implementation of environmental protection policies has had an impact on the production and operation of the steel industry. Xinda iron and steel group has some problems in environmental protection requirements, which makes it difficult to adapt to market demand and policy requirements.