Hebei Tangshan Iron and Steel Transformation "Four Steps"

In the face of overcapacity in the industry and decline in corporate profits, Tangshan’s policy makers boldly reformed and took the main business of iron and steel and the development of emerging industries as the main targets, and implemented four outputs: technology, capital, management, and labor services. The non-steel industry achieved over RMB 10 billion. Yuan income

Counting the income of the non-steel industry of the Hebei Iron and Steel Company, Tangshan Iron & Steel Group Co., Ltd., a subsidiary of the Hebei Iron and Steel Group, can undoubtedly take the top spot. In 2013, the company's non-steel industry output value exceeded 10 billion yuan, and the number of industrial employees reached 17,000, accounting for 46% of the company's total number.

Why did Tangshan Steel's non-steel industry have such a breakthrough? Yu Yong, the chairman of Hebei Iron and Steel Group, told the reporter that this was due to Tangshan Steel's stepping up the pace of transformation and upgrading of the company and adopting the “four outputs” approach to fully expand the company’s living space, enabling the company to win competitive opportunities in multi-industry development. .

Over the years, the quality of Tangshan Steel has been ranked the highest in Hebei Province. However, in the new situation, the overcapacity in the steel industry has caused a sudden increase in the pressure on business development. The decision-makers of Tangshan Steel boldly carried out business reforms, taking the main business of iron and steel and developing emerging industries as the main targets, implementing “four outputs” and accelerating the transformation and upgrading of enterprises.

First, the transfer of technology to create revenue is the first step. General enterprises rely on products to earn money, and Tang Gang has made a gratifying step in the export of independent intellectual property rights. Since 2008, Tangshan Steel has successfully implemented a green transformation. In the past four years, Tangshan Iron & Steel gained more than 5 billion yuan in the use of secondary energy, and formed a series of core technologies with independent intellectual property rights in this field, and won the first prize of Hebei Provincial Science and Technology Progress Award. In 2013, the Ministry of Industry and Information Technology announced the “List of Cleaner Production Model Enterprises in Key Industries”. Tangshan Steel has become one of the only two selected companies in the national steel industry. Seeing the broad prospects of the environmental protection industry, Tang Steel took the initiative and commercialized its energy conservation and environmental protection technologies. This energy-saving technology has been adopted by Baosteel Group Xinjiang Bayi Steel Works, Tianjin Rongcheng United Steel Group Co., Ltd., and Tangshan Guofeng Steel Co., Ltd. and many other domestic steel companies. At the end of 2013, Tangshan Iron & Steel also integrated and packaged energy, environmental protection, water resources, iron and steel enterprise by-products, and comprehensive utilization technologies for emissions, and carried out promotion, consulting, energy saving and environmental diagnosis, design, technological transformation, and operation management services. At present, the service has been extended to petroleum, chemical, electric power and other fields.

Exporting capital to increase value is the second step in the transformation of Tangshan Steel. The development of an enterprise requires not only the development of a product market, but also the development of a capital market. In light of this understanding, Tang Gang has fully established a new vision of international vision and optimized allocation of global resources. In March of last year, Tangshan Iron & Steel cooperated with the world's largest steel trader, the German High Group, to export capital for equity participation and opened up the expansion from product manufacturers to product vendors. According to statistics, in the previous cooperation with Degussa, the total export volume of Tangshan Steel Products has achieved breakthroughs in successive years, and exceeded 1 million tons, 1.55 million tons and 3.07 million tons respectively from 2011 to 2013. This year, Tangshan Steel's goal of exporting steel products is to exceed 4 million tons. While the export of capital enabled Tang Gang to enjoy an international export platform, the cooperation with Degussa ranged from simple steel trade development to technology, resources, and corruption, and the two sides went from a trade relationship to a capital bond.

After obtaining an international export platform, output management became the third challenge Tang Steel faced. In December of last year, Tangshan Puxiang (Tangshan) New Light Source Co., Ltd. was put into operation. The company was jointly established by Tangsteel Chuangyuan Fangda and Pohang ICT, with a total investment of 61.26 million yuan. The product is positioned as an energy-saving, long-lived, high-efficiency high-end product. LED lighting has broad prospects in the fields of industry, civil use, and urban construction. Currently, in the new light source company, Pohang only dispatched several technical backbones and senior management personnel. The company’s production and operation management was jointly undertaken by more than a hundred cadres and employees transferred from the main industry of Tangshan Iron and Steel, and thus the Tangshan Iron and Steel Corporation. The management method was brought to the new company. In April of this year, Tangshan Iron & Steel and Siemens signed a framework agreement for cooperation in energy conservation and environmental protection. The two sides launched comprehensive cooperation in the field of energy conservation and environmental protection and jointly entered the Chinese energy conservation and environmental protection industry. This opened up a broader market for Tanggang's management output.

Through technological innovation, production efficiency has increased, but the problem of redundant personnel has become the fourth battle for enterprise transformation and upgrading. To this end, Tangshan Steel vigorously carried out export of labor services, comprehensively carried out the re-employment and training of workers in transition, and enabled employees to acquire various skills. At present, more than 400 Tang Steel people have entered the logistics, property and other industries. In February of last year, Tanggang, through a relatively mature management system formed over the years, officially contracted the property management system of Sijiaying Iron Mine in Tangshan City through competition. 315 employees of Tangshan Iron and Steel Corp. took the high-quality logistic services known as “Tangshan Iron and Steel Standards” to the Sijiaying Iron Mine in the form of labor export and became a successful attempt of Tangshan Iron & Steel to expand the development of the non-steel industry.

According to Wang Lanyu, chairman of Tangshan Iron and Steel, the future development of Tangshan Iron and Steel is to deepen the processing of steel products, while fully exploiting energy-saving and environmental protection industries, logistics and steel processing and distribution industries, equipment manufacturing and engineering services, energy and chemicals, circular economy, and cities. Six non-steel industry groups such as service-related industries. By the end of the “Twelfth Five-Year Plan”, efforts will be made to increase the non-steel employees to more than 20,000 and the non-steel output value to more than 80 billion yuan, forming half of Tangshan Steel.