By 2015, Baosteel's non steel industry operation scale will reach 200 billion yuan; Ansteel's non steel business revenue will account for more than 15% of the group's business revenue; The non steel industry operating revenue of Wuhan Iron and Steel Group is expected to double from 51 billion yuan in 2010 to over 110 billion yuan, accounting for more than 30% of the group's operating revenue; The non steel industry of Shougang will generate a sales revenue of about 100 billion yuan (according to the scope of Beijing); Shagang Group plans to achieve a non steel industry revenue of 100 billion yuan; The annual total output value of Tangshan Iron and Steel's non steel business of Hebei Iron and Steel Group is planned to reach 90 billion yuan; Kunsteel's non steel industry sales revenue will reach 50 billion yuan; TISCO's non steel operating revenue will reach over 35 billion yuan; Ma Steel strives to achieve a non steel business revenue of 30 billion yuan; Valin Group's Xianggang ensures a revenue of 20 billion yuan&hellip& hellip;

Faced with the current situation of low profit or even loss operation in the steel industry, steel enterprises have significantly increased their efforts in the development of non steel industries and accelerated their efforts; Transforming from solely focusing on the development of the main steel industry to a focus on strengthening the main steel industry and extending it to the upstream and downstream steel industry chain, and moderately developing related diversified industries;.

“ Moderately developing related diversified industries is not only important for the steel industry, but also for; Twelfth Five Year Plan; During the period, achieve; The Four Transformations; This is an important issue for steel companies; Stabilize the market, control production, adjust structure, and ensure profitability; Effective means& rdquo; The relevant person in charge of the Multi operation Working Committee of China Iron and Steel Industry Association recently emphasized in an interview with China Metallurgical News.

Five new trends have emerged in the development of diversified industries

At present, China's steel industry has entered a critical stage of structural adjustment and transformational development. The previous method of relying on simple large-scale expansion to obtain profits is no longer able to solve the problems of the low profit era. Moderately developing non steel industries and cultivating new economic growth points has become an inevitable choice for steel enterprises to reduce risks, support the development of their main steel business, and achieve efficiency goals.

In recent years, many steel companies have achieved significant results and valuable experience in the non steel industry, forming a group of advantageous non steel industries that have become a powerful tool for steel companies to cope with low profits. According to the development of non steel industries in steel enterprises in recent years and the formulated; Twelfth Five Year Plan; In the development blueprint, Chinese steel enterprises have shown the following new trends in non steel industry development orientation and industry selection:

Firstly, in order to ensure resource supply, the development of the mineral resources industry has significantly increased.

Iron ore, coke and other steel raw materials have become the main constraints on the development of China's steel industry; Bottleneck ";, Especially mining price merchants are an important reason for the high production costs, low profits, and even losses in the steel industry. Expanding into the upstream raw material and fuel industry and strengthening control over strategic resources has become a key and bright spot in the development of non steel industries for steel enterprises in recent years. For example, in recent years, Wuhan Iron and Steel has accelerated the development of overseas mineral resources, completing transactions for the Canadian CLM project, South Australian CXM project, Brazilian MMX project, Liberian state mine project, and Madagascar Sulara project. The South Australian WPG project has signed a formal agreement and has now locked in billions of tons of overseas equity resources. Hebei Iron and Steel Group Mining Company has increased its control over iron ore resources from 889 million tons at the beginning of its establishment to 5 billion tons in 2010 through the integration of mineral resources in Hebei Province and surrounding areas; Twelfth Five Year Plan; At the end, a production capacity of 35 million tons of iron concentrate powder will be formed, and the self-sufficiency rate is expected to reach over 40%. In addition, Taiyuan Iron and Steel is accelerating the construction of the Yuanjiacun iron ore project, which is expected to build a large-scale mine with an annual output of 22 million tons of iron ore and 7.5 million tons of iron concentrate this year, achieving self-sufficiency in iron ore supply; Chongqing Iron and Steel has invested heavily in the development of 5 domestic mines and the Istan Xinshan magnetite project in Australia. After being put into operation, the self-sufficiency rate of iron ore raw materials will reach over 70%; Kunsteel has implemented a series of mining construction projects represented by Dahongshan Iron Mine, and the self-sufficiency rate of iron ore has increased to 46%& hellip;

The second is to accelerate the development pace of the steel extension processing industry in order to achieve product value-added.

In recent years, the pace of steel enterprises extending downstream has significantly accelerated. By extending the deep processing of steel, not only can the added value of products be increased, but also the procurement supply chain of users can be shortened, achieving the goal of "customer satisfaction"; Win win situation;. For example, Bohai Iron and Steel Group regards the deep processing of steel products as the main direction of enterprise product transformation and industrial upgrading. The extended industrial chain projects with a total investment of more than 13 billion yuan, including metallurgical product deep processing projects, Tianjin Port Heavy Industry Manufacturing Base projects, Dagang Shajingzi wind power projects, and ring forging projects, have all started construction in 2011. Ansteel regards the deep processing of wire products as a key focus of the non steel industry, mainly developing important applications such as steel ropes and increasing production capacity, and strengthening cooperation with Belgian Bekaert to produce high value-added high-quality tire steel cord. Magang has jointly established a steel product research and development center with Chery, Jianghuai Automobile, and other companies, and jointly established Magang (Wuhu) Material Technology Company, specializing in deep processing such as cutting, distribution, and stamping of automotive panels. In addition, new steel cutting and distribution centers and steel bar welding mesh processing production centers have been built in areas with relatively concentrated or large customer locations such as Chongqing and Chengdu& hellip;

The third is to take the main service industry as the starting point and vigorously develop productive service industries.

Many steel companies have established a complete set of production-oriented service industries that are complementary to their main business system, fully functional, and specialized. Many industries have undergone a transformation from endogenous to market-oriented, with the most prominent being commercial logistics, engineering technology services, and finance. Taking the logistics industry as an example, on January 9, 2012, Hebei Iron and Steel Group officially signed contracts with Hebei Port Group and Cangzhou Port Group to develop and construct a comprehensive port area in Huanghua Port with an annual throughput of 50 million tons of ore berths and 20 million tons of general miscellaneous berths. It is reported that Hebei Iron and Steel Group; Twelfth Five Year Plan; We will invest 8.6 billion yuan in the logistics industry and achieve a revenue of 100 billion yuan by the end of 2015. The Jiulong Iron and Steel Logistics Project, initiated by Shagang at the beginning of last year, with a total investment of 30 billion yuan, will focus on creating a steel logistics park that integrates spot and futures trading, cutting and processing, transportation and distribution, import and export bonded, e-commerce, and financial guarantee and pledge. Heavy Steel“ Twelfth Five Year Plan; Key non steel industry projects to be developed& mdash;— Jingjiang Logistics Base, covering an area of over 1800 acres, will become the main transit base for imported raw materials such as iron ore and a bridgehead for steel exports after completion& hellip; In addition, in the fields of engineering technology services and financial services, steel enterprises have also created a number of advantageous non steel industries. The engineering technology services industry includes Baosteel Engineering Technology Group, Taiyuan Iron and Steel Engineering Technology Company, etc. The financial industry includes Baosteel's Huabao Investment Company and Shandong Iron and Steel Group Laigang's Qilu Securities.

The fourth is to seize the opportunity of economic transformation and actively explore strategic emerging industries.

Strategic emerging industries such as energy conservation and environmental protection, high-end equipment manufacturing, information technology, new materials, and new energy are also key areas for steel enterprises to explore in non steel industries. Steel enterprises rely on a number of energy-saving and environmental protection technologies and equipment manufacturing technologies developed in clean production, energy conservation and consumption reduction, environmental governance, and comprehensive resource recycling and utilization to expand the energy-saving and environmental protection industry. For example, Ma Gang and China Steel Ma Mining Institute jointly established Anhui Xinchuang Energy saving and Environmental Protection Technology Co., Ltd., engaged in smoke and dust control (dust removal, desulfurization), industrial wastewater treatment, comprehensive resource utilization and other businesses. Sanfeng Environmental Industry Group, a subsidiary of Chongqing Iron and Steel Group, is committed to investing, constructing, and operating urban waste incineration power generation projects, and has become the unit responsible for formulating national standards for waste incineration power generation in the environmental industry. The urban energy service industry of Shandong Iron and Steel Group Jigang is accelerating; Centralized heating, sewage treatment, and waste plastic disposal; The argumentation and construction of the three major centers&hellip& hellip;

In addition, many steel companies are actively entering the high-end equipment manufacturing and information technology industries, and a number of advantageous enterprises have emerged. For example, Bengang Crane Manufacturing Co., Ltd. has an annual scale of over 35000 tons of lifting and transportation machinery equipment. Its independently developed and designed 260 ton large metallurgical casting crane fills the domestic gap; Xuangong Machinery Company, a subsidiary of Hebei Iron and Steel Group, has continuously strengthened its product competitiveness in the three major fields of engineering machinery, metallurgical mining machinery, and environmental protection machinery. Among them, the total sales of bulldozers rank second in the country. In the field of information technology industry, Shandong Iron and Steel Group Jigang Automation Information Technology Company focuses on industrial software development. In 2011, it achieved a social market contract value of over 100 million yuan and created profits of tens of millions of yuan; Magang Control Technology Company has become a system integrator and strategic partner of companies such as Siemens, Schneider, HP, IBM, etc& hellip;

The fifth is to leverage the unique advantages of enterprises and creatively cultivate characteristic non steel industries.

Some steel companies actively combine their own actual situation and unique advantages to creatively cultivate some unique non steel industries. For example, Jiugang has vigorously cultivated grape cultivation and creatively developed the wine making industry by combining the unique natural environment of its location. At the same time, it has expanded the cultivation industry to include fruits and vegetables, and developed the breeding and food processing industries. Shougang will utilize the valuable land resources left behind after relocation to complete and operate well; China Animation and Game City; The project aims to develop it into a national key cultural industry park that integrates creativity, production, exhibition, and trading, forming a cultural and creative industry cluster.

“ Twelfth Five Year Plan; Five key focuses for the development of diversified industries

Although the non steel industry of China's steel enterprises has made significant progress in recent years, there are still some problems: firstly, a high degree of dependence on the main steel industry and a low degree of non related transactions; Secondly, the overall competitiveness is not strong, and investment is too diversified; Thirdly, there is a lack of investment in funds, talents, and technology, resulting in insufficient capacity for sustainable development; Fourthly, the mechanism cannot fully adapt to the needs of the development of non steel industries.

In response to the above issues, based on the development ideas of non steel industries in some steel enterprises, the relevant person in charge of the Multi operation Working Committee of the Steel Association pointed out that:; Twelfth Five Year Plan; During this period, steel companies need to further accelerate the development of non steel industries and strengthen efforts in the following areas:

One is to persist; Mainly steel, moderately diversified;, Avoid entering; The Diversification Trap;.

Proposed by the Steel Association; The Four Transformations; In the middle,“ In terms of enterprise development, it is necessary to shift from focusing solely on the development of the main steel industry to focusing on strengthening the main steel industry and extending it to the upstream and downstream steel industry chain, and moderately developing related diversified industries;, It is required that steel enterprises not only place the development of non steel industries in an important position, actively cultivate new economic growth points, but also emphasize the specific development direction of non steel industries& mdash;— Extending towards the upstream and downstream industrial chain of steel, it is particularly emphasized to develop moderately while strengthening the main steel industry. That is to say, in the non steel industry; Enter” In terms of decision-making, we need to be cautious, grasp the relevance and synergy with the main steel industry, highlight key points, strive for excellence without seeking too much, and never easily intervene in industries that are unfamiliar or lack sufficient talent support, avoiding the trap of blind diversified development.

The second is to persist; Do something and do nothing;, Accelerate optimization and integration, vigorously cultivate advantageous non steel industries.

When developing non steel industries, steel companies should adhere to the principle of; Do something and do nothing; The principle is to achieve progress, retreat, and retention, accelerate optimization and integration, vigorously cultivate and form advantageous non steel industries, continuously optimize the structure of non steel industries, and realize the transformation from extensive operation to intensive operation, and from; Placement type; Towards“ Benefit oriented; Transformation. For example, non steel industries with poor profitability, poor market prospects, no development prospects, and not centered around the steel industry chain should be eliminated as soon as possible; Support should be given to non steel industries that have average benefits but can create more job opportunities; We need to expand and strengthen non steel industries that have good market prospects and are closely related to the steel industry chain. For example, after withdrawing from the manganese iron and silicon iron smelting industries with high energy consumption and facing new national policy restrictions, New Steel also restructured and gradually withdrew from cement, carbon, plastic steel products and other enterprises that were at a disadvantage, had poor efficiency, and lacked competitiveness.

Thirdly, we should follow the development laws of our respective industries and accelerate the transition from; Endogenous type; Turn“ Market oriented;.

The non steel industry originated from the auxiliary business of steel enterprises, and in the early stage of transformation and development, it is inevitably highly dependent on the main steel industry. Coupled with the limitations of its own development capabilities, it lacks core competitiveness in market competition. When developing non steel industries, steel companies should follow the development laws of their respective industries and accelerate the transition from; Endogenous type; Towards“ Market oriented; Only by transforming and continuously enhancing its market competitiveness can it become bigger and stronger& ldquo; We are delighted to find that some steel companies' non steel industries are actively going global in addition to focusing on the internal market, and their market competitiveness is increasing day by day. For example, in 2011, Shandong Iron and Steel Group's non steel industry achieved a revenue of 11.75 billion yuan, of which external market revenue was 5.702 billion yuan, accounting for nearly 50%& rdquo; The person in charge said, '; Only by going out and fighting in big waves can the non steel industry truly grow and become stronger& rdquo;

The fourth is to accelerate the innovation of systems and mechanisms, and establish a management system suitable for the development of non steel industries.

There are currently two main management models for non steel industries in steel enterprises. Most of them adopt the parent subsidiary operation model of group control, classified management, and independent operation. There are also a few enterprises that establish a specialized non steel industry management company to centrally manage and operate all non steel industries. Industry insiders point out that the current management system and mechanism of steel enterprises for non steel industries cannot fully adapt to the requirements of accelerating the development of non steel industries. In the future, we need to accelerate the innovation of management system and mechanism, and truly establish an organizational structure system that is compatible with our own non steel industry development strategy and conforms to the laws of non steel industry development. At the same time, we will accelerate the establishment of a modern enterprise system, actively reform the property rights system, promote the diversification of property rights and investment entities, stimulate development vitality, and strive to achieve the transformation from single ownership to multiple forms of ownership. For example, Ansteel's non steel industry has established a partnership with world-class enterprises in various industries; Mountaineering” The main mode is to introduce strategic investment partners, leverage the advanced technology of these enterprises to promote the upgrading of industrial technology level, and revitalize existing industrial assets.

The fifth is to strengthen talent cultivation and introduction, and cultivate a group of leading talents to promote the development of non steel industries.

Talent is a constraint on accelerating the development of non steel industries; The bottleneck;. At present, the human resource structure of steel enterprises cannot fully meet the requirements of the rapid development of the non steel industry. Therefore, it is necessary to strengthen the training and reserve of human resources in the non steel industry, especially to increase the training and introduction of high-level talents in the non steel industry, and create a leading talent team to promote the development of the non steel industry. For example, Wuhan Iron and Steel Group is adapting to non steel industries such as mineral resource development; Go out; The development strategy proposes to focus on cultivating high-end talents with expertise in capital operation, international operations, investment and mergers and acquisitions. In addition, the comprehensive establishment of a core talent pool for non steel industry units proposed by WISCO is also worth learning from by other steel enterprises. (Source: China Metallurgical News)