"Any company must continuously reform, innovate, transform and upgrade, and private steel companies must have the consciousness of transformation and upgrading." Recently, Shen Wenrong, president of the All-China Small and Medium Metallurgical Enterprise Chamber of Commerce and chairman of the Shagang Group Board of Directors, accepted the China Metallurgical News. In an interview, the reporter emphasized the necessity of reform and transformation and upgrading of private enterprises.
In 2014, private steel enterprises produced 445 million tons of steel, accounting for 54% of the country's crude steel output; the sales profit rate was 1.45%, 0.7 percentage points higher than the key large and medium-sized enterprises. The backbone of private steel enterprises has done a lot of work in the transformation and upgrading, and gradually made progress in the development concept, business model, process technology, variety quality, management innovation, energy conservation and environmental protection.
"If private steel companies do not reform or transform, they will definitely die. If the reforms are not in place or corrected, they will die faster." Shen Wenrong is frank and straightforward. In the first quarter of this year, Shagang completed a total of 7.815 million tons of iron output, an increase of 1.8%, steel output of 8.457 million tons, an increase of 3.23%; steel output of 8.26 million tons, an increase of 1.4%; operating income of 61.46 billion yuan, a year-on-year increase 5.1%; realized profits and taxes of 4.39 billion yuan; high-quality steel exports of 1.848 million tons, an increase of 66%.
Shen Wenrong made some suggestions for the transformation and upgrading of private steel enterprises.
Transformation and upgrading to find the right direction
"From the experience of Shagang, private steel companies, in addition to enhancing the consciousness of reform and innovation, must pay more attention to the progress in research and development, product structure upgrading and cost control." Shen Wenrong said. In recent years, Shagang has insisted on highlighting quality, efficiency and efficiency, strengthening production organization management, actively promoting system cost reduction, strengthening brand building, developing new product optimization structure, organizing reduction of staff and efficiency, and in-depth promotion of performance appraisal, so that the production and operation of enterprises remain A steady and orderly development trend.
In terms of R&D strength, private enterprises should be strengthened. "Since most of the private steel companies have developed in the last 10 or 20 years, the R&D strength of these enterprises is very weak. There is basically no technical accumulation and R&D strength. In this respect, it must be strengthened as soon as possible." Shen Wenrong believes.
It is understood that in the 40 years of development, Shagang Group has paid great attention to scientific research and innovation, technology leadership, built its own steel research institute, and formed a strong research team. However, there are quite a few private steel companies whose R&D strength is generally weak and they have a lot of debts.
In terms of variety structure, private enterprises should break through as soon as possible. "Most of the high-end products are in state-owned enterprises. Most private steel companies can only produce low-end and mid-range products, and most of them are big road goods." Shen Wenrong believes that "it is necessary to take advantage of the latecomer and break through as soon as possible."
In 2014, among the 103 key private steel enterprises, a considerable number of enterprises suffered losses, and the loss of loss-making enterprises reached 7.8 billion yuan, a loss of 4.8 billion yuan over 2013. The reason is that the innovation ability is low and the product market competitiveness is weak.
In terms of cost control, Shen Wenrong believes that “the cost of steel per ton should be really reduced to the lowest pointâ€, otherwise it will be difficult to win in this round of knockouts.
It is understood that Shandong Shiheng Special Steel, Hebei Puyang Iron and Steel and other enterprises, located inland, production scale of more than 3 million tons, no high-end products, no large equipment, the main product is ordinary steel, but the benefits have always been in the forefront . The main experience is to implement low-cost management in the aspects of process matching, strict evaluation of all links, and to control the production of all-element balance to the extreme, and to refine the products, differentiate and low-cost products.
The cost control of Jianlong Iron and Steel Group also did a good job. The manufacturing costs of the seven products ranked the top three in the industry, and four of them ranked first. The company's ironmaking cost is lower than the industry average of 146 yuan / ton, and its hot rolled thin broadband steel cost is lower than the industry average of 425 yuan / ton.
"We must have the determination to open our own swords, do a good job in reform, innovation, transformation and upgrading, and organize production around profit." Shen Wenrong stressed.
Correct understanding of excess and proper handling
"The steel industry must have excess. More than 20% of the production capacity cannot be digested domestically. However, the surplus is not China or the unique phenomenon of the steel industry." Shen Wenrong pointed out that "the surplus of Europe, the United States and Japan is much more serious than ours." This is also true of many industries such as automobiles and shipbuilding."
Shen Wenrong believes that “going out†is an important way to resolve excess capacity. So is the steel plant “going out†or is the steel product “going out�
"For private enterprises, the first is the product 'going out'. The steel factory 'going out' is likely to "go" the company." Shen Wenrong reminded.
According to reports, Europe, the United States, South Korea, Japan and other countries and regions have a serious excess of steel production capacity, and for many years, it is almost impossible to transfer steel plants to these areas; and Africa, Southeast Asia, South Asia and other regions need Accurately assess the investment environment, government integrity, legal environment, labor conditions, etc. "Once there is an error, it is a dead end. Especially for private enterprises, once they fail, there is no room for recovery." Shen Wenrong believes that "building a steel factory abroad usually takes 3 to 5 years, and the risk is great. And the product' Going out is more appropriate for private companies."
It is reported that in 2014, Shagang Group made great efforts to increase steel export and strive to expand the international market. The total annual export of steel products was 4.309 million tons, up 72.36% year-on-year; the foreign exchange earned by exports was 2.27 billion US dollars, up 75% year-on-year. The steel mill ranks first.
If the excess capacity is reduced in an integrated way, it involves mergers and acquisitions; if different ownership is involved, it will also involve the question of who owns the control. "If private enterprises take banknotes into state-owned enterprises, they say no, they are certainly not motivated; if holding state-owned enterprises, especially high-quality state-owned enterprises, it will involve the assessment of problems and the loss of state-owned assets; if the state-owned enterprises are reorganized, private enterprises will not do it." Shen Wenrong believes that “it is difficult to achieve restructuring between large state-owned enterprises and private enterprises in the steel industry.â€
In March of this year, the Ministry of Industry and Information Technology publicly solicited opinions on the “Steel Industry Adjustment Policy (Revised in 2015) (Draft for Comment), which proposed to further organize the optimization and adjustment of the steel industry structure, accelerate the merger and reorganization, and by 2025, the top 10 steel enterprises were thick. Steel production accounts for no less than 60% of the total, forming 3 to 5 large steel groups with strong competitiveness in the world.
"It is necessary to consider the loss of state-owned assets and the loss of private assets. Only by doing a good job of top-level design can we further promote restructuring." Shen Wenrong believes that "overcapacity is not a year or two, nor is it three or five years. From the process of Europe and the United States May be a longer-term process."
Scientific advancement of environmentally friendly top design
"For the environmental management department, the higher the standard, the better. However, if the enterprise does not reach it, it means there is no standard. In addition, the enterprises approved by the Ministry of Industry and Information Technology and the National Development and Reform Commission are included in the scope of supervision. 50 million tons to 100 million tons of strip steel and power frequency furnace are still in production, without any supervision, and go unpunished." Shen Wenrong stressed that there must be a good top-level design, such as adopting a policy of tax reduction for environmentally-friendly enterprises, etc. Promote environmental protection and the healthy development of the steel industry.
It is understood that the new environmental protection law has been implemented since January 1 this year. To meet the new emission standards of the country, the Ministry of Industry and Information Technology estimates that the environmental protection investment of steel per ton will increase by 13%, and the operating cost of steel per ton will increase to about 200 yuan. Since the local government is no longer blindly pursuing GDP, the environmental protection requirements will be more stringent, and the penalties for enterprises that fail to meet the standards will be increased. For a considerable number of private steel companies, due to the fact that they rely on fund-raising and bank loans when investing, they are currently facing difficulties in financing and financing. Further investment in environmental protection will have certain financial difficulties. In addition, because of the long-term process characteristics of the steel industry, even the enterprises that meet the standards can not achieve the full discharge standards, but also need to strengthen the operation and management of equipment.
On March 25, 17 resident representatives from more than 10 villages and towns around Shagang Plant were hired as Shagang Environmental Protection Supervisors. Shagang also issued a “commitment letter†to the public to build a green steel city and the surrounding people. This is a practical action taken by Shagang to open the factory gate to accept the supervision of the masses and jointly build a green strategic decision.
Over the years, Shagang's total investment in energy conservation, emission reduction and environmental protection has exceeded 6 billion yuan, and more than 100 major clean production energy conservation and environmental protection projects have been completed, covering everything from iron front to smelting and rolling. "In the next three to five years, Shagang will continue to invest 10 billion yuan to improve the environmental protection level to meet new environmental standards." Shen Wenrong said.
However, how many companies like Shagang have long paid attention to environmental protection and have financial strength?
It is understood that according to the original environmental protection law, enterprises that can basically meet the standards account for 60% to 70%. According to the new environmental protection law standards, the proportion that can basically reach the standard is much lower. Where is the investment in environmental protection from the low profits of the entire industry? How are companies profitable?
"To have a scientific and rational top-level design, we must have policy support and financial support, and we must subsidize well-doing enterprises. The international practice is also the same. Digestion of scrap steel, waste plastic rubber, waste gas, etc. must be subsidized and reduced. Tax and other policy support.†Shen Wenrong said, “This requires a top-level design, and the central government will pay out the policy.â€
Shen Wenrong emphasized that after 3 to 5 years, steel companies with certain foundations can meet the new environmental protection standards. However, the key is that the environmental protection law enforcement standards must be strictly consistent. Otherwise, it is very likely that enterprises with good environmental protection will be eliminated by the market because of the high cost.
Entering the international first brand square array in 5 years
During the '13th Five-Year Plan' period, the overall guiding ideology of Shagang's five-year plan was 6 words of 'quality, efficiency and efficiency'. After five years or so, from China's first phalanx, it entered the world's first brand. Square array.†Shen Wenrong introduced the goal of Shagang’s “Thirteenth Five-Year Planâ€.
In terms of quality, in addition to improving the quality of the varieties, Shagang will also carry out personalized custom production, after five years of efforts to become an international brand (world-renowned brand). At present, the quality level of Shagang's varieties is only one step away from the level of international advanced steel companies. "In this respect, we have to learn from the best companies in China, such as Baosteel; to be in line with the best companies in the world, such as Posco." Shen Wenrong said.
Efficiency is reflected in two aspects: First, the per capita steel production. At present, the per capita steel production of Pohang is 1,800 tons to 2,000 tons, and the per capita steel production of Shagang's headquarters is 1,300 tons. There is still a big gap. Therefore, Shagang will have to achieve such a level through five years of efforts, otherwise it will not be competitive. The second is to use robots instead of labor. This is also a good combination of intelligence, information and mechanization. It is estimated that within five years, Shagang will use 1,500 to 2,000 robots instead of labor to improve the labor efficiency of Shagang. "Don't think that robots are more expensive than labor. In a few years, labor costs will rise and plan ahead." Shen Wenrong said.
In terms of efficiency, enterprises must be effective in order to survive. The quality is good, the efficiency is high, and the benefits have the premise and guarantee. "As long as one company has benefits and does not have benefits, it is necessary to find problems from itself." Shen Wenrong stressed.
In the future, Shagang Group will conscientiously implement the national development policy on steel industry, take the scientific development concept as a guide, further accelerate the pace of transformation and upgrading, vigorously promote product structure adjustment, extend and expand the industrial chain, do a good job in supporting enterprise construction, and vigorously develop modern logistics. Actively and steadily do a good job in capital operation, continuously enhance the comprehensive competitiveness of enterprises, further improve, strengthen and optimize enterprises, and strive to make Shagang a "100-year-old factory" and make new contributions to building a steel power.
"'Shagang this year is 40 years old, and the future is a '100-year old factory'!" Shen Wenrong finally said.
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