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Panzhihua Iron and Steel end "six with loss" Sichuan steel industry needs to increase concentration

Column:Industry dynamics Time:2018-01-29
"In 2017, Panzhihua Iron and Steel achieved full-year profit, the end of the loss for 6 consecutive years, playing a beautiful turnaround." January 24, in the provincial CPPCC panel of the first session of the symposium, the provincial CPPCC...

"In 2017, Panzhihua Iron and Steel achieved full-year profit, the end of the loss for 6 consecutive years, playing a beautiful turnaround." January 24, in the provincial CPPCC panel of the first session of the symposium, the provincial CPPCC members, The good news from Li Junhong, a professor-level senior engineer at Panzhihua Iron and Steel Research Institute, sparked heated debates from members.


Panzhihua Iron and Steel Group's experience, to some extent, represents the entire steel industry in Sichuan. 
In the opinion of the deputies, Panzhihua Iron and Steel Co., Ltd.'s "stop bleeding" reflects the urgency of restructuring and upgrading of traditional industries and deepening supply-side structural reforms.


Do subtraction

Resolutely postponing production capacity, leaving more resources to potential industries

Last year, Sichuan completed its 5-year target of producing 4.2 million tons of crude steel in 2016 ahead of schedule. Since last year, Sichuan has pressured itself to reduce its crude steel production capacity by 770,000 tons and eliminated 375,000 tons of iron-making capacity and removed more than 10 million tons of illegal production capacity , Completely ban "ground steel."


"Last year, Panzhihua Iron and Steel remained at full capacity, steel prices rebounded sharply over the previous two years, the industry turnaround into profit." Turning to the steel market, the NPC deputies, Panzhihua Iron and Steel Group Co., Ltd. Party Secretary, Chairman Duan Xiangdong conceal Inner joy 
From 2014 onwards, Panzhihua Iron and Steel has eliminated 3.62 million tons of crude steel production capacity, accounting for 26% of total capacity, while increasing structural adjustment of varieties, heavy rail production and sales rank first in the country. "After shutting down the production capacity of workers, either voluntarily buy-off length of service or leave to participate in new vocational training and then hired new positions in 2017 the number of workers dropped by nearly 47% in 2013, one year can save labor costs 2.5 billion Yuan or more. "


"Winter you go to Panzhihua Yinjiang town to see farmhouse hotel live in all over the country from the" winter migratory birds. "In the past, here to mining, smelting industry for a living, many locals are reluctant to leave." Provincial CPPCC members Pan Pinghua Yu Ping, deputy secretary of the Municipal Party Committee about this feeling deep, which is the result of structural reform Panzhihua supply side, "We withstand the downward pressure on fiscal revenue, shut down more than 500 small mines, small mills, compressed steel Production capacity of more than 600,000 tons, the land, capital and other resources added to the health care industry more.


Do addition

Turn to high-end manufacturing, accelerate industrial consolidation and increase concentration


Steel industry completely warmed up? "Deepen supply-side structural reform to be two-pronged approach, eliminating excess capacity left behind only the first step." In the provincial CPPCC members, executive vice president of Southwest University of Economics and Management Li Han seems The steel industry is more important is how to go next.


"After going to full production capacity, Panzhihua Iron and Steel strategic transformation, pay more attention to high-end manufacturing." Li Junhong also shared another good news: early December last year, Panzhihua Iron and Steel Group Xichang Steel and Vanadium smelting DP1180 automobile high-strength steel success, become The second domestic production of the steel company. 
This steel is mainly used for high-grade automotive exterior panels, structural panels and car crash and other components, has been Volvo, Ford and other automotive companies recognized as enterprises to develop new markets and improve efficiency "new weapon."


Li Junhong's institute undertook more than 100 scientific research projects of Panzhihua Iron and Steel (Group) Co., Ltd. and its subsidiaries (subsidiaries), and focused on breaking through the key core technologies that restrict the comprehensive utilization of vanadium and titanium resources and striving to basically realize the industrialization of titanium lifting in blast furnace slag project within 3 years Establish a comprehensive industrial chain of vanadium and titanium comprehensive utilization.


CPPCC Provincial Committee, Party Secretary of Dazhou Federation of Trade Unions, Vice Chairman Chang Rong in "on the supply side of coal and iron and steel industry structural reforms to resolve the debt crisis" pointed out that both steel companies in Sichuan are facing the common problem of survival and development, and Confronted with the disorderly market competition, the four major steel companies are facing the market impact of foreign enterprises and local small enterprises.


"Economies of scale are very important to the iron and steel enterprises, and the larger the scale, the lower the costs." Li Han gives the answer that current international and domestic enterprises have stepped up restructuring and reshuffling in succession. New steel mills are emerging in the international market and Sichuan steel mills participate International competition, strong combination and merger and reorganization are important measures. "We can consider mergers and acquisitions, capacity replacement, optimization of layout, adjustment of structure, speeding up the reorganization and integration of the iron and steel enterprises in the province, especially short-run iron and steel enterprises, and improving regional industrial concentration And market influence. "


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