Chapter 1742 The Big but Not Strong Steel Industry
"District Chief Bao, we have all thought about these methods you just mentioned......"
Bai Zongyi saw Bao Feiyang talking eloquently, and couldn't help but find an opportunity to speak: " We have not only thought about it, but also worked hard, but the reality is not always as ideal as the plan, for example, you just said that the existing equipment of Pudong Iron and Steel will be auctioned, in fact, we have also dealt with some old equipment before, those private steel mills can give a very low price, basically when the scrap is sold, although the condition of these equipment is a little better, but it is really difficult to find a seller who can give a reasonable price in China, as for selling abroad, maybe the price can be higher, but counting the transportation costs, the actual income may be lessβ¦β¦β
Bai Zongyi shook his head and said: "It's not that I'm arrogant, in fact, the difference between Pudong Iron and Steel and a world-class steel plant is too big, if you want to sell the current Pudong Iron and Steel and use the income from the sale of the old Pudong Iron and Steel to build a new steel plant, it's a drop in the bucket, not to mention one-tenth, I don't think one-twentieth, one-thirtieth, or even one-fiftieth ......."
"As for the support of the central government, I hope that the central government can support a little more, but I don't think it is very likely, at the beginning of the year the central government put forward China's steel production surplus, requiring a 10% limit on production, and clearly put forward that resolutely stop duplicate construction. It is clearly required that new steelmaking, ironmaking and rolling projects will not be approved for three years. It requires that all unapproved projects be stopped, that enterprises and production lines that have stopped production must not resume production, that equipment must not be transferred if they are eliminated on the spot, and that the financial and power departments should stop lending and restricting power supply......"
Bai Zongyi shook his head as he spoke: "In this case, there is no possibility that the central government will agree to our new plant and expand the scale of steel production of Pudong Iron and Steel at all!"
"Take another 10,000 steps back, even if we take the relocation of the old factory as the name, let the central government agree to the project, but the support that the central government can give us is probably very limited, not to mention anything else, before we applied for the technical transformation of a production line of Pugang, as long as a few million, the ministry has not been approved for half a year, the ministry has made it clear that now the financial situation is tight, the central financial deficit is also a lot, and there are many projects to support, whether the new plant of Pudong Iron and Steel can be approved is a problem, even if the project is approved, how much money can be applied for, I think it is also limited......"
Bai Zongyi looked at Bao Feiyang and said: "By the way, I heard that the head of the Bao district was sent to our Pujiang by the Central Organization Department, if the head of the Bao district can ask for hundreds of millions of funds from the central government for the new project of the Pugang Iron and Steel Plant, then I will definitely raise my hands in favor of this plan." β
Bai Zongyi looked at Yang Chenglin again: "I won't talk about the city, Mayor Yang is here, if the city can also support hundreds of billions, then I will work hard to build Xinpu Iron and Steel well!"
"As for the ...... of Huixun District"
Bai Zongyi turned his head to look at Bao Feiyang again: "In addition to land, what else can Huixun District support us?"
Yang Chenglin frowned slightly, what Bai Zongyi said was good, but it was a little too harsh to say it at this time.
Yang Chenglin also basically agreed with Bai Zongyi's view, the overall economic situation was not good that day, taking the steel industry as an example, the cumulative loss of the whole industry in the first quarter was 680 million yuan, the loss increased by 80% year-on-year, and the loss of the whole industry was as high as 60%. The country's steel output has ranked first in the world for three consecutive years, but the production capacity of ordinary steel products, which accounts for more than 90 percent of the output, is far greater than consumer demand, and the finished product inventory of large and medium-sized enterprises alone exceeds tens of billions, so the central government has proposed to limit production capacity, in this case, the possibility of new steel projects being approved is very small.
Of course, the situation of Pudong Iron and Steel is relatively special, it belongs to the relocation of the old factory, and the old factory will be eliminated while building the new plant. In addition, the overcapacity of the steel industry is a structural overcapacity, the oversupply of ordinary steel products, but in some high-tech steel products, the domestic lack of corresponding production capacity, the annual value of this part of the imported steel is close to tens of millions of tons, if the new plant of Pudong Iron and Steel can be on high-tech products, but also to avoid the production restriction policy.
However, when it comes to new technologies, the scale of investment will be larger. The central and municipal governments have been full of large projects to be implemented in recent years, and there is no new plant in Pudong Iron and Steel Co., Ltd., although the central and municipal governments must still have some mobile funds, but there are many places where these funds need to be used. If you want to go to the new plant of Pudong Iron and Steel Co., Ltd., let the central government and the city take the money, if you take less, it will have no effect, and if you take more work in other aspects, it will definitely be affected, after all, the investment required by a world-class large steel plant is not a small number.
"Comrade Feiyang......"
Yang Chenglin looked up at Bao Feiyang: "Have you considered the situation mentioned by Comrade Zong Yi? Are you sure that you will get the support of the central government for the project of the new Pudong Iron and Steel Plant? If the central government can support it, how strong can the support be?"
Bao Feiyang groaned slightly, he felt that it didn't seem to be a good choice to discuss this issue with Yang Chenglin, Yang Chenglin's attitude was more conservative. As for Bai Zongyi...... In Bao Feiyang's view, this person's ability is not considered for the time being, but his initiative is too lacking, not only did he not put forward any valuable opinions, but he kept finding fault and pouring cold water. If you really want to go to the new plant project of Pudong Iron and Steel Plant, then the first thing to do is to replace Bai Zongyi, such a person will definitely not be able to lead the new plant of Pudong Iron and Steel well, and it will definitely be impossible to do a good job in the construction of the new plant of Pudong Iron and Steel Plant.
Bao Feiyang thought for a while and said: "The development of China's steel industry is very fast, last year's steel output has reached 1.1 billion tons, has been ranked first in the world's steel production for three consecutive years, has formed more than 1,000 steel grades including high-temperature alloys, precision alloys, rolling and processing including plates, strips, tubes, profiles, wires, More than 40,000 varieties and specifications of various shapes such as silk have just now, and more than eighty percent of the steel produced each year is produced in accordance with international standards, and one-third of the physical quality has reached the international level, which has occupied a pivotal position in the world. β
"However, we have also seen that although China's steel production has reached the world's first, but from the perspective of the international competitiveness of China's steel industry, whether it is in the scale of the enterprise, variety structure, product quality, energy consumption, production efficiency, or in terms of technical equipment, process level, management level, compared with steel powers, such as Japan, South Korea, the United States and some European countries, there is still a significant gap. The competitiveness of China's steel industry in the international arena is not strong, and China is already recognized as a steel power, but it is not a steel power!" Bao Feiyang said.
"At present, domestic iron and steel enterprises have been seriously oversupplied in terms of wire rod, rebar, small and medium-sized materials, ordinary medium plates, welded pipes and other steel products, but on the other hand, steel plates, oil pipes, stainless steel, tool steel and other categories of steel need to be imported, and the gap has reached 7 million tons......"
"It can be seen that China's existing steel products, high-tech content, high value-added products accounted for a significantly lower proportion than foreign large iron and steel enterprises, in the export products, steel primary products accounted for a large part, reaching more than 60 percent, high value-added products accounted for only about 10 percent......"
"Some high-tech and high-value-added products cannot meet domestic demand in terms of production capacity and quality. For example, 67 percent of the demand for cold-rolled silicon steel sheets must be obtained through imports, and for example, 56 percent of the demand for oil well pipes must be imported, 71 percent of the tin plates and 80 percent of the stainless steel plates need to be imported......
"In terms of production, there is still a large gap between China's steel production technology and the world's advanced level, more than one billion tons of steel output every year, a quarter of which are produced using domestic backward technology and equipment, and a quarter of which are produced by domestic general technology and equipment, only less than 20 percent of the steel output, reaching the international advanced but not yet first-class process and equipment production ......"
"Backward production technology and equipment will inevitably lead to the lack of competitiveness of our steel products in terms of quality and cost. Taking the energy consumption per ton of steel production as an example, last year, China's iron and steel industry consumed 1.29 tons of standard coal per ton of steel produced on average, and advanced enterprises can reach 0,901 tons of standard coal, but the international can reach 0.65 tons of standard coal, our average energy consumption is nearly twice as high, and even the energy consumption of advanced iron and steel enterprises is nearly forty percent higher......"
Bao Feiyang said: "It is in this context that the central government proposed that domestic steel production is overproduced and requires a 10% limit on production. However, the central government is very resolute in restricting the production capacity of backward technology, including the elimination of small steel mills in various places. However, on the other hand, the central government encourages iron and steel enterprises to upgrade their technology, catch up with the world's advanced level, improve product quality, reduce production costs, and at the same time fill the gaps and insufficient production capacity of domestic high-quality steel and high value-added steel products......"
"So from this aspect, Pudong Iron and Steel closed the old plant, eliminated backward production capacity, built a new plant, introduced new technology, and improved product quality, which is in line with the central policy, as long as we tightly lock the elimination of backward technology, the introduction of new technology, with world-class standards to build a new plant, the central government will definitely support!"
Bai Zongyi as the general manager of Pujiang Iron and Steel, Yang Chenglin as the mayor of Pujiang City, they are very clear about the situation of the domestic steel industry, as well as the policies and attitudes of the central government, theoretically speaking, Bao Feiyang's statement is not wrong, the closure of the old plant to build a new plant, is indeed in line with the central government's policy line for the adjustment of the steel industry, but Bao Feiyang did not as Bai Zongyi expected, clearly said how much support the project can get in the central government! In other words, all this is just Bao Feiyang's own analysis, but whether or not he can get the support of the central government depends on the specific attitude of the central government and the competition in various places.