Bai Zongyi was stunned by Bao Feiyang's question, in front of Mayor Yang Chenglin, of course he couldn't say that he had no confidence.

However, it is not easy to build a world-class steel plant. Iron and steel plant is a typical scale efficiency enterprise, and is capital-intensive, technology-intensive, scale priority, in order to build a first-class steel plant, the need for large capital investment, but also the introduction of advanced technology and technology, some problems even have money can not be solved.

Bao Feiyang didn't wait for Bai Zongyi to answer, he paused and continued: "I saw in the report of Pujiang Iron and Steel Plant that the operation and development of Pujiang Iron and Steel Plant is limited by many conditions, such as the surrounding iron ore and coal mine, which are the two major raw material production areas, but if we take a longer view, then this is the advantage of our Pujiang steel industry development." ”

Bao Feiyang said: "At present, the world's largest steel production region is in Asia, and mainly in Japan and South Korea, Japan and South Korea's steel mills are similar to the situation of Pudong Iron and Steel Co., Ltd., that is, there is no iron ore and coal supply nearby, and the iron ore and coal they need to produce are basically purchased internationally. ”

"They import iron ore and coal by sea, and then export steel by sea, which is inexpensive and allows them to select high-grade iron ore ......"

"From the current point of view, the use of domestic iron ore, there is still a certain advantage in price, but in the long run, with the development of the domestic steel industry, the increase in demand for iron ore, domestic iron ore will not be enough, and with the rise in the domestic price level, as well as the change of the exchange rate, the price of domestic iron ore in the future will definitely exceed that of foreign countries, so the layout of large steel plants in the future should be the same as Japan and South Korea, are on the coast, and can directly import iron ore and coal through the wharf......"

"At that time, the location of Pujiang City is not a disadvantage but an advantage, because Pujiang is close to the sea and has a deep-water port, which can easily receive high-grade iron ore imported from overseas, which is more advantageous than the steel mills in the mainland!"

Mayor Yang Chenglin nodded: "Comrade Feiyang is right, the city's analysis of the development trend of the steel industry, but also believes that the coastal layout of large-scale steel plants is feasible, according to the city's planning, it is also hoped that Pujiang Iron and Steel Plant can be moved to the Lingang area, and iron ore can be imported directly by sea." ”

At present, the iron ore used in Pujiang Iron and Steel Plant mainly comes from China, although Pujiang Iron and Steel Plant is near the river, but there is no large-scale iron ore in the entire Tianjiang River Basin, although there are several iron mines in the middle and upper reaches, but the scale is limited, and the second is to supply local iron and steel plants, and there are not many to Pudong Iron and Steel Plant. Most of the steel used by Pugang now comes from the north, and the iron ore in the north is generally transported to the port by rail, and the south is transported by sea, but the draft of Chunjiang is not very deep, and the sea ships generally can't get in, so they need to go to Pujiang Port to change to a small boat, and then transport it to Pugang here, and the cost has increased a lot if there is an additional transshipment process.

In addition, some iron ore from the northwest and southwest is transported by rail, but the cost of rail transportation is higher. Therefore, the city has long proposed to move Pudong Iron and Steel to the Lingang area to reduce the transportation cost of raw materials.

As for the imported high-grade iron ore mentioned by Bao Feiyang...... At least import iron ore in large quantities, and even use foreign iron ore, everyone has not yet had such an idea. Although by 1999, China's foreign exchange was not as scarce as before, but the expansion of the trade surplus, the increase of capital accumulation, including the attraction of foreign capital are the focus of the state's governance, in terms of imports, it is also to encourage the import of domestic shortage, the technical level of relatively high industrial products, as for the precious foreign exchange and trade surplus to buy primary iron ore, in the eyes of many people is still a waste. No one can foresee that in a few years, with the explosion of domestic steel production capacity, most of the world's steel will be produced in China. If countries around the world are ranked according to steel production, the first place will be a large steel province in China, and a province's steel output can lead the world.

At that time, China's domestic steel mills will have to look for and grab iron ore all over the world!

Yang Chenglin's words undoubtedly affirmed Bao Feiyang's idea of building a new Pudong Iron and Steel along the coast: "If Pudong Iron and Steel wants to move and build a new plant, then the technical level of the new plant, the city also hopes to move closer to the world's advanced level, and must strive for the goal of a world-class iron and steel enterprise, even if the first step cannot be done, it is necessary to do it in accordance with this plan and reserve space for development!"

Among the officials in Pujiang, Yang Chenglin's past experience in power was generally more conservative and less aggressive, which is also a common feature of many Pujiang officials. However, on the issue of Pugang, his thoughts are the same as Bao Feiyang's, or the attitude of Pujiang City is also like this, that is, either not to move, to relocate and build a new factory, then it must be built the most advanced, even if it cannot be reached at once, it is necessary to reserve space for development.

The difference between the two is that Bao Feiyang's plan is a one-step plan, while Yang Chenglin is more inclined to develop gradually and reserve space.

Yang Chenglin said: "According to the plan to build a world-class steel plant, the construction investment of the new plant will reach 10 billion yuan ......"

"To build a world-class steel plant, the central government will give some support, but there will not be too much funding, and the city will also support, but it will not be too much, after all, the financial resources are not abundant now, and the main part is still to be ......solved by the enterprises themselves."

Yang Chenglin looked up at Bao Feiyang: "Even if you don't have to do it in one step, because the starting point is relatively high, the initial investment will not be less, Comrade Feiyang, what do you think?"

If it were anyone else, Yang Chenglin would not mention this issue, after all, he still understands the situation in Huixun District, among the districts and counties of Pujiang City, the financial strength of Huixun District is basically ranked in the last three, and it is basically the second-to-last, only slightly stronger than Shadao County. Even if the new site of Pugang is placed in Huixun District, Huixun District will not be able to provide much support.

Bao Feiyang nodded and said: "To build a world-class steel plant, it does require a huge investment, after the reorganization of the resources of Pudong Iron and Steel now, coupled with the support of the central government and the city, this is the starting point of the new Pudong Iron and Steel District, and Huixun District hopes that the new Pudong Iron and Steel will still be built in Huixun District, and the district will participate in the ...... with capital, land and other resources."

Bao Feiyang said: "In addition, we can also introduce other investors, including private capital, social capital and foreign capital, to build Xinpu Steel through joint ventures!"