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Main features of the development of private steel economy

Nov. 23, 2020

The first is to implement the "six guarantees" task and quickly resume production and stabilize employment. The Metallurgical Chamber of Commerce and private steel companies earnestly implement the spirit of the central government on epidemic prevention and control, set up a leading agency for epidemic prevention and control at the first time, formulate prevention and control measures, carefully organize and deploy carefully, overcome various difficulties, and ensure production and operation to the greatest extent The normal progress of activities has strongly supported the resumption of work and production of downstream industries and the rapid recovery of the national economy. Enterprises have taken extraordinary measures to ensure normal production during the "exceptional period of the epidemic". For example, during the severe period of the epidemic, Zhongtian Steel has more than 1,500 employees staying in the factory to stabilize production. To share worries for the country and solve problems for the people, many companies not only did not reduce their employees, some companies also increased their employees' income. According to incomplete statistics, private iron and steel enterprises have absorbed more than 1 million jobs, promoted employment in upstream and downstream industries and surrounding communities, and played an important role in stabilizing employment, stabilizing the industrial chain and promoting local economic development.


The second is to resolutely respond to the government's call and make more contributions to the fight against the epidemic. The Metallurgical Chamber of Commerce called on private steel companies to actively donate money and materials and purchase medical supplies to help fight the epidemic. According to incomplete statistics, 143 private steel companies donated money and materials to government departments at all levels, with a total value of more than 1.43 billion yuan and a total donation of more than 100 million yuan. There are three companies including Fangda, Zhongtian and Jianlong, and more than 40 donations have exceeded 10 million yuan. Private entrepreneurs take the initiative to assume social responsibilities and lead companies to do everything possible to help fight the epidemic. For example, Delong Group launched the "Global Procurement" action, which means global procurement of anti-epidemic materials such as masks, protective clothing, and temperature measuring guns, and coordinated international logistics issues; The Indonesian company of Delong Group purchased 18,000 N95 masks in Jakarta, Indonesia on January 24 (New Year's Eve) to help Wuhan.

Main features of the development of private steel economy

The third is to accelerate the transformation of ultra-low emissions and promote green development. At present, there are 228 iron and steel enterprises across the country with 610 million tons of crude steel capacity undergoing ultra-low emission transformation, of which private steel accounts for the vast majority. This year, 15 private steel companies including Tangshan Ganglu, Hebei Donghai, Wu'an Yuhua, etc. were selected as the green manufacturing list of the Ministry of Industry and Information Technology. So far, following Tianjin Rongcheng, Sanbao, Tangshan Delong, Zhongtian, Yonggang, Puyang, Hebei Jingye, After Shi Heng, Thai Steel and other companies, the Ministry of Industry and Information Technology announced the five batches of green manufacturing companies, 72 steel companies, including 39 private steel companies.


With the ultra-low emission transformation of the steel industry, many private steel companies have adopted a series of online environmental monitoring data smart large screens to strongly promote smart environmental protection and improve the smart cloud platform of environmental protection managers; for the entire process and the entire process of steel production, there are Organized and unorganized emissions implement real-time and dynamic display of all-round environmental protection emissions; realize the integration, visualization, informationization, and intelligence of "management and control" of the production environment, improve management efficiency, and help Meili Steel Plant.


Fourth, it actively participated in the mixed reform of state-owned enterprises, and achieved remarkable results in mergers and acquisitions. In recent years, private steel groups such as Shagang, Delong, Jianlong and Fangda have actively responded to the state's call to participate in the reform of mixed ownership of state-owned enterprises and have achieved initial results. For example, Delong Group signed an agreement with the Tianjin State-owned Assets Supervision and Administration Commission in 2019 to invest more than 20 billion yuan to carry out mixed reforms, mergers and acquisitions and reorganization of Tianjin’s original “Bohai Iron and Steel” to establish Xintian Steel Group, accepting more than 40,000 employees, and using a brand-new mechanism. Encourage employees and turn losses into profits after the mixed reform, from a monthly loss of 700 million yuan to a profit of more than 500 million yuan; for this reason, Ding Liguo, chairman of Xintian Steel Group, held the 17th China M&A Annual Conference on September 19 this year. Won the 2019 M&A Outstanding Contribution Award. Since 2020, mergers and acquisitions and reorganization work have continued to advance steadily, such as Fangda Group's reorganization of Sichuan Dagang; Jingye Group's reorganization of Yunnan Yongchang and Guangdong Taidu steel plants; Jianlong's trusteeship of Shanxi Haiwei Iron and Steel; Hebei Jinan Iron and Steel to Yuhua Leading the implementation of the "strong-strong combination" reorganization through asset operation in Wu'an Xinghua, Wenfeng, Tangshan Ganglu, etc., have achieved positive progress and staged results.


Fifth, it will enhance its status in China's private economy and increase its social responsibility. In the 2019 “Top 500 Chinese Enterprises” list released by the China Enterprise Confederation and the China Entrepreneurs Association, 31 private steel companies were shortlisted, accounting for 6.2%, and the number of companies was the same as the previous year; in 2019, “China In the “Top 500 Manufacturing Companies” list, 59 private steel companies were shortlisted, accounting for 11.8%, an increase of 6 from the previous year, an increase of 1.2 percentage points. Among the “Top 500 Chinese Private Enterprises” released by the All-China Federation of Industry and Commerce in 2019, 61 private steel companies were shortlisted, accounting for 12.2%, an increase of 5 from the previous year and an increase of 1 percentage point. Among them, 13 steel companies Enterprises ranked in the top 100; among the “Top 500 Private Enterprises in Manufacturing in China” in 2019, 91 private steel enterprises were shortlisted, 4 more than the previous year, accounting for 18.2%, an increase of 0.8 percentage points year-on-year. Most private steel entrepreneurs have not forgotten their original intention of “serving the country and repaying the society by industry”, and have continuously increased their social responsibility. While doing their main business well, they are also enthusiastic about public welfare. According to incomplete statistics, private steel companies have contributed to the society in the past 10 years. The donations amounted to 19 billion yuan.


In summary, the achievements of the steel industry benefited from a series of national "six stability" and "six guarantees" policies such as tax reduction and fee reduction to help companies relieve difficulties and expand domestic demand. It is preliminary estimated that the steel industry will enjoy a supportive policy dividend of about 17 billion this year. yuan. At the same time, the reason why the steel industry is able to strongly support the rapid recovery of the national economy with strong and abundant production capacity is due to the unique institutional advantages, market advantages and reform advantages of the Chinese economy on the one hand, and the steel industry based on the industry for many years. In fact, aspiring to serve the country by industry, through long-term perseverance and unswerving comprehensive reform and independent innovation, it has a relatively complete industrial chain, a relatively high degree of marketization, and relatively strong technological innovation capabilities, and other strong industrial foundations and industrial advantages.


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