In June 2008, Hebei's corporate restructuring took a major step. The Hebei Provincial Party Committee and the provincial government decided to combine the Tangshan Iron and Steel Group and the Handan Iron and Steel Group to form a strong Hebei Steel Group. This is equivalent to the Hebei Tang, Yi, Xuan, Cheng and Handan Iron and Steel originally from the merger of Wuyang Iron and Steel, Hengshui thin plate, and other six large-scale iron and steel enterprises in a comprehensive management of a group.
Facing the high expectations of the provincial party committee and the provincial government, the management team headed by Wang Yifang, chairman of the board of directors and general manager, formed a consensus after systematic reflection on the development direction of the company: with the goal of fully building scientific demonstration enterprises, the company insisted on deepening enterprise management. Throughout the entire enterprise development process, promote enterprises to carry out industrial restructuring and product optimization and upgrading.
After expert consultation and team review, a “seven-unified†scientific management and control system for development planning, capital operation, financial resources, human resources, marketing, etc. was fully operational in the group. In accordance with this system, the Group has converted Tangsteel, Xuanhua, Chenggang, and Caida Securities, subsidiaries of the original Tangshan Iron & Steel Group, and subordinate companies of the Handan Iron and Steel Group into first-level subsidiaries of direct management; at the same time, the group has established headquarters. 9 functional management departments such as the Development Planning Department and the Assets Finance Department, and all the businesses of import and export, mineral resources, procurement, sales, and investment have been consolidated into the Group.
It now appears that restructuring has brought at least four changes to the management of Hebei Iron and Steel Group.
Change 1, the ability to resist risks has increased significantly. Before the group was established, various iron and steel companies took the initiative in their own way. In the event of a storm in the market and mutual fighting in the regional market, some companies were in crisis. At present, the situation is significantly different. The Group’s comprehensive strength has been favored by major financial institutions. In 2009, the Group won a total of more than RMB 200 billion in comprehensive credit grants from major banks. Replacing only a high amount of money, the entire group can save up to 300 million yuan in financial expenses each year.
Second, the strategic position has improved significantly. Hebei Iron and Steel Group's “production, supply and sales†was substantially reorganized, and the scale was large. Naturally, it made partners and even competitors stand out. This enabled the Group’s strategic position in international competition to be significantly improved. After the establishment of Hebei Iron and Steel Group, it has signed strategic cooperation agreements with 13 world-renowned equipment manufacturers such as Siemens and SMS, as well as domestic large-scale upstream and downstream companies such as Shanxi Coking Coal Group, Jizhong Energy Group and Jinan Heavy Industry. In response, Group International Trade Company General Manager Duan Guomian said with deep feeling: “Before the establishment of the group, Hebei’s steel companies purchased ore on the international market, and corporate officials were reluctant to face it. Nowadays, many countries’ mining company corporations personally Bring the team to meet us."
The reporter learned that along with the improvement of strategic position, Hebei Iron and Steel Group has only adopted large-scale centralized procurement for two years, which has enabled the six major categories of materials to reduce procurement costs by more than 2 billion yuan. In addition to the company’s courtesy in international procurement, domestic improvement has also been very effective.
"When the Hebei Iron and Steel Group was integrated, there were only a few mines, and the self-sufficiency rate of ore resources was less than 9%. However, as soon as the group became integrated, the advantages were shown and more attention was paid." Wang Hongren, chairman of the group's mining company, told reporters that at present, the group's ores The amount of resource control has soared from 889 million tons at the beginning of its establishment to 4.4 billion tons, and the planned control of resources has increased from more than 1 billion tons to 6.6 billion tons. In the first half of this year, the mining companies have realized profits of 1.156 billion yuan, an increase of 300 million yuan over the same period of last year.
Third, the division of labor in the industry is more clear. After the establishment of the group, it immediately established a development plan for the "four major boutique bases" through in-depth research. This is based on the excellent plates of Tangshan Iron and Steel Co., Ltd., the high-end heavy plate of Wugang Co., Ltd., and the precision tinplate of Hengban Co., Ltd. Quality plate base; high-quality building materials base based on high-strength building long products of Xuanhua Iron & Steel Co., Ltd. and high-strength building long steel of Chenggang Co., Ltd.; high-quality special steels such as special round steel of Tangshan Iron & Steel Co., Ltd., Tangshan Stainless Steel Co., Ltd. and Xuanhua Iron & Steel Co., Ltd. special wire. Base; Vanadium-titanium base with Chenggang Company as its main feature.
This strategic division of labor not only avoids internal competition among Hebei Iron and Steel Group companies, but also promotes enterprises to make products more specialized, refined, and deeper. Yu Yong, Chairman of Tangshan Iron and Steel Company, told the reporter: “In 2010, Tangshan Iron & Steel improved its specifications and achieved an effect of more than 500 million yuan. The output of high-end products increased by 240% year-on-year, and the cold-rolled products exported 570,000 tons throughout the year. The country and 159 regions account for one-tenth of the total domestic exports of similar products.†Li Guiyang, chairman of Handan Iron and Steel Co., Ltd., said: “Shandong Steel specializes in fine plates and has developed six major categories of dozens of fine steel products, including Automotive steel already has 80% production capacity."
Change IV, the overall optimization of resource allocation. After the establishment of Hebei Iron and Steel Group, on the one hand, it has reduced 354 duplicate construction projects and reduced investment by 21.4 billion yuan. On the other hand, by deepening management, the comparable cost of enterprises has been reduced by more than 7 billion yuan over last year.
“Before the establishment of the group, for the purpose of insurance, we have to find more of our raw material purchases and product sales. Many supply components are inevitably complex, and freight costs also increase the cost per ton of steel by nearly one hundred yuan.†The reporter explained that after the establishment of the group, due to the large amount of purchases, it signed supply and sales contracts with many key companies at home and abroad, which not only resolved the supply risks, but also achieved the nearest transportation. At the same time, the stable supply of materials facilitates the optimization of the production process. Through the unified deployment of raw materials by the Group, we have used coal to achieve consistency throughout the year, and the process has been optimized quickly. The production cost per ton of steel has dropped by more than a hundred yuan, saving hundreds of millions of dollars in expenditure for enterprises."
Facing the high expectations of the provincial party committee and the provincial government, the management team headed by Wang Yifang, chairman of the board of directors and general manager, formed a consensus after systematic reflection on the development direction of the company: with the goal of fully building scientific demonstration enterprises, the company insisted on deepening enterprise management. Throughout the entire enterprise development process, promote enterprises to carry out industrial restructuring and product optimization and upgrading.
After expert consultation and team review, a “seven-unified†scientific management and control system for development planning, capital operation, financial resources, human resources, marketing, etc. was fully operational in the group. In accordance with this system, the Group has converted Tangsteel, Xuanhua, Chenggang, and Caida Securities, subsidiaries of the original Tangshan Iron & Steel Group, and subordinate companies of the Handan Iron and Steel Group into first-level subsidiaries of direct management; at the same time, the group has established headquarters. 9 functional management departments such as the Development Planning Department and the Assets Finance Department, and all the businesses of import and export, mineral resources, procurement, sales, and investment have been consolidated into the Group.
It now appears that restructuring has brought at least four changes to the management of Hebei Iron and Steel Group.
Change 1, the ability to resist risks has increased significantly. Before the group was established, various iron and steel companies took the initiative in their own way. In the event of a storm in the market and mutual fighting in the regional market, some companies were in crisis. At present, the situation is significantly different. The Group’s comprehensive strength has been favored by major financial institutions. In 2009, the Group won a total of more than RMB 200 billion in comprehensive credit grants from major banks. Replacing only a high amount of money, the entire group can save up to 300 million yuan in financial expenses each year.
Second, the strategic position has improved significantly. Hebei Iron and Steel Group's “production, supply and sales†was substantially reorganized, and the scale was large. Naturally, it made partners and even competitors stand out. This enabled the Group’s strategic position in international competition to be significantly improved. After the establishment of Hebei Iron and Steel Group, it has signed strategic cooperation agreements with 13 world-renowned equipment manufacturers such as Siemens and SMS, as well as domestic large-scale upstream and downstream companies such as Shanxi Coking Coal Group, Jizhong Energy Group and Jinan Heavy Industry. In response, Group International Trade Company General Manager Duan Guomian said with deep feeling: “Before the establishment of the group, Hebei’s steel companies purchased ore on the international market, and corporate officials were reluctant to face it. Nowadays, many countries’ mining company corporations personally Bring the team to meet us."
The reporter learned that along with the improvement of strategic position, Hebei Iron and Steel Group has only adopted large-scale centralized procurement for two years, which has enabled the six major categories of materials to reduce procurement costs by more than 2 billion yuan. In addition to the company’s courtesy in international procurement, domestic improvement has also been very effective.
"When the Hebei Iron and Steel Group was integrated, there were only a few mines, and the self-sufficiency rate of ore resources was less than 9%. However, as soon as the group became integrated, the advantages were shown and more attention was paid." Wang Hongren, chairman of the group's mining company, told reporters that at present, the group's ores The amount of resource control has soared from 889 million tons at the beginning of its establishment to 4.4 billion tons, and the planned control of resources has increased from more than 1 billion tons to 6.6 billion tons. In the first half of this year, the mining companies have realized profits of 1.156 billion yuan, an increase of 300 million yuan over the same period of last year.
Third, the division of labor in the industry is more clear. After the establishment of the group, it immediately established a development plan for the "four major boutique bases" through in-depth research. This is based on the excellent plates of Tangshan Iron and Steel Co., Ltd., the high-end heavy plate of Wugang Co., Ltd., and the precision tinplate of Hengban Co., Ltd. Quality plate base; high-quality building materials base based on high-strength building long products of Xuanhua Iron & Steel Co., Ltd. and high-strength building long steel of Chenggang Co., Ltd.; high-quality special steels such as special round steel of Tangshan Iron & Steel Co., Ltd., Tangshan Stainless Steel Co., Ltd. and Xuanhua Iron & Steel Co., Ltd. special wire. Base; Vanadium-titanium base with Chenggang Company as its main feature.
This strategic division of labor not only avoids internal competition among Hebei Iron and Steel Group companies, but also promotes enterprises to make products more specialized, refined, and deeper. Yu Yong, Chairman of Tangshan Iron and Steel Company, told the reporter: “In 2010, Tangshan Iron & Steel improved its specifications and achieved an effect of more than 500 million yuan. The output of high-end products increased by 240% year-on-year, and the cold-rolled products exported 570,000 tons throughout the year. The country and 159 regions account for one-tenth of the total domestic exports of similar products.†Li Guiyang, chairman of Handan Iron and Steel Co., Ltd., said: “Shandong Steel specializes in fine plates and has developed six major categories of dozens of fine steel products, including Automotive steel already has 80% production capacity."
Change IV, the overall optimization of resource allocation. After the establishment of Hebei Iron and Steel Group, on the one hand, it has reduced 354 duplicate construction projects and reduced investment by 21.4 billion yuan. On the other hand, by deepening management, the comparable cost of enterprises has been reduced by more than 7 billion yuan over last year.
“Before the establishment of the group, for the purpose of insurance, we have to find more of our raw material purchases and product sales. Many supply components are inevitably complex, and freight costs also increase the cost per ton of steel by nearly one hundred yuan.†The reporter explained that after the establishment of the group, due to the large amount of purchases, it signed supply and sales contracts with many key companies at home and abroad, which not only resolved the supply risks, but also achieved the nearest transportation. At the same time, the stable supply of materials facilitates the optimization of the production process. Through the unified deployment of raw materials by the Group, we have used coal to achieve consistency throughout the year, and the process has been optimized quickly. The production cost per ton of steel has dropped by more than a hundred yuan, saving hundreds of millions of dollars in expenditure for enterprises."
Steel Structure Building,Steel Structure Workshop Co., Ltd. , http://www.nssbuilding.com