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Ten years ago, the leader of the domestic steel industry was the Anshan Iron and Steel Group and currently ranks fifth in the domestic steel industry. "I am confident that Anshan Iron and Steel will be able to return to its original position after 3 to 5 years," said Zhang Xiaogang, deputy to the National People's Congress and general manager of Anshan Iron and Steel Group, during an exclusive interview.
From the deputy chief engineer of Anshan Iron and Steel Group to the general manager of Anshan Iron and Steel Group, Zhang Xiaogang took office only more than a year. However, in the more than one year that he took office, the business strategy of Angang Group is undergoing tremendous changes.
Walking out of Anshan
Zhang Xiaogang stated that one of Angang’s important strategies this year is to focus on the layout. At present, Anshan Iron and Steel has, in addition to the Anshan base, Yingkou Bayuquan and Beijing Chaoyang two iron and steel bases.
The original planned Yingkou Bayuquan base will be put into operation at the end of this year, with a production capacity of around 6.5 million to 7 million tons, but Zhang Xiaogang changed his mind at a high-level discussion and the Bayuquan project will be put into operation in July this year. This change will change the situation for Angang. The impact of economic benefits is obvious.
"Original plan was to lose 2 billion yuan, because the investment must have a payback period, and now it may be possible to change the profit to 2 billion yuan in advance because the market demand is too strong."
Zhang Xiaogang also disclosed to this newspaper that Anshan Iron and Steel Group is still planning to establish a cold rolling plant together with a steel company in Fujian, “there will be results in the fastest two monthsâ€.
“Even if this negotiation fails, Fujian is also a place to set up a factory. This is the need for Angang Group to deploy its overall strategic configuration,†Zhang Xiaogang said.
The industry is also very concerned about the merger of Anshan Iron and Steel and Ben Steel, if the merger of the two companies, Anshan Iron and Steel will be ranked fifth now, among the ranks with Baosteel, successfully entered the first camp of the steel industry. According to Yu Tianyu, general manager of Benxi Iron & Steel, there will be a substantive plan after the two sessions.
Although the merger with Benxiu was delayed, this did not prevent Anshan Iron and Steel from starting its industry consolidation. Zhang Xiaogang revealed that Angang is planning to merge with another steel listed company. Since it involves listed companies, it is not convenient to disclose the names. However, the experience of the merger between the two companies has been learned. Now the integration of the two companies has entered the operational stage.
However, the expansion of Angang is not blind. Although many small and medium sized iron and steel companies or upstream and downstream companies of iron and steel enterprises took the initiative to find Anshan Iron and Steel and hoped Anshan Steel would purchase some equity through investment, they were rejected by Zhang Xiaogang.
"The key thing to do now is to focus on the business and do a good job in the layout of the company," Zhang Xiaogang said.
Zhang Xiaogang stated that the location of the next steel mill is likely to be overseas.
What's more important is to climb with others
In Zhang Xiaogang’s new year and more, just the main business of Angang, Zhang Xiaogang has carried out three international expansions and cooperation.
Anshan Iron and Steel Company, as a traditional state-owned enterprise, has abundant resources, but at the same time, it also bears a heavy historical burden, such as more than 140,000 employees. For another example, Angang also accumulated many supporting industries during the development process.
At this time, Zhang Xiaogang had to carry out a "major surgery" on these supporting industries, hoping to further tap its intrinsic value.
On this issue, Zhang Xiaogang has his own set of theories: "If you want to climb higher mountains, it depends not only on your physical strength, but more importantly with anyone who climbs the mountain."
This is exactly the overall principle of Zhang Xiaogang's reform of the auxiliary industry. Zhang Xiaogang, an ancillary industry company of Angang, has all chosen the top-ranking companies in the world for cooperation.
Anshan Iron and Steel's refractory company, with the growth of Anshan Iron and Steel Company for several decades, has an iron and steel market of 50 million tons and also has the best magnesium sand mine in the world. However, there is no core technology and no core management team. As a result, Zhang Xiaogang chose to cooperate with the world's number one (Wei Suwei), and the two sides adopted a 50:50 cooperation ratio. In August of this year, the two joint venture factories of both parties will start production.
Although Angang’s steel wire factory still has brands and technologies, the industrial scale is no longer the first in the industry. Zhang Xiaogang chose to join the world’s number one steel wire connection company, Bekaert, Belgium. The negotiations between the two sides are nearing completion.
Angang’s electric company is also currently talking with GE, “there will be results within the first two months.â€
The last company had a six-month negotiation with the world's No. 1 mold-protection company, Stollberger, Germany. In the end, due to too many disputes between the two companies, the negotiations failed. However, Angang Steel has started to rank second and third with the world. Company contact.
Zhang Xiaogang said that after these projects, we will sum up. This is a good or bad way, and it is unsuccessful. If successful, it will continue to expand.
"There will be no opportunity for disrupting the war."
As a person in charge of a traditional state-owned enterprise, Zhang Xiaogang is very relished for his knowledge in the Central Party School. He also spares no effort to hire teachers of the Central Party School to provide training for senior and middle-level enterprises. At the same time, he is also able to speak fluent foreign languages. Many foreign steel company's bosses are his friends.
Anyone who understands Zhang Xiaogang’s drastic reforms over the past year or so has no doubt that Zhang Xiaogang is a “radicalistâ€. In fact, Zhang Xiaogang is quite rational.
Zhang Xiaogang believes that this is an integration trend that Chinese steel companies must experience in order to be the first in the world, but he still believes: “Now is not the best stage of integration.†His reason is that the profits of steel companies are very good now. Well, this means that the cost of integration is high, and it will not reflect the integrated competitive advantage in a short time.
“The best time should be when the repeated construction of the Chinese steel industry is reflected in the market; when brutal competition officially begins; companies with weak competitiveness enter the period of loss or even close down.â€
Zhang Xiaogang thinks: “There will never be a chance to disrupt the war.†He pointed out that steel companies growing up under this background must have “risk awareness†because once the market has adjusted, expansion will not become a driving force. It will only become a burden.
"Any risk may cause excess capacity in the steel industry, resulting in a loss of investment in the steel industry." He even asserted that the "hot plate" that is currently the hottest on the market will have the "best profit" after 2 years.
“It is too risky to reconstruct a steel plant in the country.†It is precisely because of this judgment that Zhang Xiaogang has extended the resources of Anshan Iron and Steel Overseas. “We are currently exploring the establishment of new steel plants overseas. The time for exploration is too long and it is relatively Anxious."
The best time should be when the repeated construction of the Chinese steel industry is reflected in the market; when brutal competition is officially started; enterprises with weak competitiveness enter the period of loss, or even when it closes down