Secretary Tao Ran opposed the 5 million ton long-process steelmaking project of Xinpu Iron and Steel from both policy and financial aspects. It is believed that Xinpu Iron and Steel does not need to rush to achieve a long process of 5 million tons, but should focus on the relocation of Pudong Iron and Steel and the supporting of joint venture projects, and determine the production capacity of about 2 million tons. Otherwise, it will be difficult to pass the policy and there will be difficulties in funding.

"The scale effect of the steel industry is very obvious"

Bao Feiyang said: "According to the industry's recognized estimates, the economic scale of the steel industry is more than five million tons, and the best scale is 10 million tons, it is precisely for this reason that in recent years, there are many mergers and acquisitions in the steel industry, and the world's major steel mills are aiming at 10 million tons, and constantly improving production capacity, the world's top five steel groups, their production capacity is more than 20 million tons, so if Xinpu Steel wants to be competitive, the production capacity of five million tons can only be regarded as a start, and 10 million tons is our goal." ”

In Bao Feiyang's view, if Xinpu Steel only has a production capacity of two million tons, then the construction of Xinpu Steel will be meaningless. The iron and steel industry pays great attention to the scale effect, the scale is large, the cost of large-scale procurement, transportation and processing of iron ore and coal can be controlled, and the construction cost of steelmaking blast furnace, pipeline, rolling equipment, heat source equipment, environmental protection equipment can also be better apportioned, and fully utilized, if the scale is small, the construction cost will be higher, and the cost of ore fuel will be higher, so the scale of modern steel production is becoming more and more concentrated, and the capacity of steel plants is also increasing. If it cannot form a scale, Xinpu Steel will lose its competitiveness and will not be able to become a world-class steel company.

However, the investment in the new steel plant is indeed very large.

"As for the investment, we expect the total investment in the first phase of the steel base to be about 35 billion yuan," Bao Feiyang said: "Among them, the introduction of foreign capital is about 15 billion yuan, and domestic capital is about 20 billion yuan." ”

"As for where the two billion yuan will come from, first of all, we will set up a Huixun District Tianjiang Iron and Steel Park Company, put the land in the park and the operation right of the park into the company, and carry out the overall operation, and the district will also strive to take out a part of the funds to invest in the park company, hoping that the city can also support a part."

Bao Feiyang said: "In addition, we can also reorganize the current iron and steel enterprises in Pujiang City, including the overall relocation of Pujiang Iron and Steel, after the relocation of Pujiang Iron and Steel, the establishment of the new Pugang Group, the district with the equity of the steel park company to replace the original land of the Pugang Iron and Steel Plant, after the assets of the park company and the Pugang Iron and Steel Plant are injected into the new Pugang, the new Pugang can mortgage to apply for a loan, and use the loan funds to participate in the construction of the joint venture project!"

"Of course, in addition to Pudong Iron and Steel, if the city can reorganize several steel mills such as Chunshan Iron and Steel and Jiangnan Iron and Steel into Xinpu Iron and Steel, then Xinpu Iron and Steel will also be stronger and better participate in the construction of joint venture projects. ”

Bao Feiyang said: " In addition to the joint venture project, Xinpu Steel itself will also build a five-million-ton scale of the whole process steelmaking project, this project we are also talking with thyssenkrupp, the conditions are still relatively favorable, the first phase of the project is expected to directly introduce some ready-made steelmaking and rolling equipment from thyssenkrupp, is the most advanced steelmaking technology in Europe, the total investment will reach 15 billion, part of the source of this part of the funds can be financed by the shares of Xinpu Steel in the joint venture project, and the other part needs the support of the central government and the city"

The total investment of 10 million tons of steel base is more than 35 billion, in addition to 15 billion foreign investment, but also more than 20 billion, such a large project, not to mention the strength of the country, but without the support of the state, relying on Huixun District and Pugang alone, it will definitely not be possible, and even the current Pujiang City does not have the strength to go on such a project alone.

"Of course, the construction of the steel base is not achieved overnight, so the funds do not need to be in place all at once. But we hope to be able to build 10 million tons of steel production capacity in about three years, and the construction period is still relatively tight, so the initial capital required is also a lot, at least more than 10 billion."

According to Bao Feiyang's plan, even if Xinpu Iron and Steel and even Chunshan Iron and Steel and Jiangnan Iron and Steel are reorganized, their own funds can be taken out is very limited, after all, the restructuring itself also costs money, and the benefits of these steel plants are also average, and their own funds are basically not much, so they will definitely not be able to come up with so much money by relying on the enterprises themselves, mainly relying on the support of the state and the city.

The government supports a part, the enterprises raise their own part, and the bank loans part, roughly forming a one-to-one ratio, that is, an investment of 21 billion yuan, the central government, Pujiang City, and Huixun District will invest 7 billion yuan, and the enterprises will raise 7 billion yuan on their own, and then 7 billion yuan through bank loans, and at the initial stage, they will also take out 4 billion yuan respectively.

Although everyone is very optimistic about these joint venture projects and agrees with the plan to build a 10-million-ton steel base, such a large investment also makes the leaders of the municipal party committee, including Tang Xingbang and Yang Chenglin, more cautious.

However, in 98 years, the country's total iron and steel output was only 110 million tons, and 10 million tons is equivalent to 9 percent of the country's total output, involving tens of billions of yuan of investment and hundreds of billions of yuan of output value.

At the Standing Committee, Bao Feiyang answered some questions from the leaders of the municipal party committee and relevant departments, and Bao Feiyang's answer was very in place, without any prevarication and ambiguity, which made the leaders of the municipal party committee, who were still a little skeptical, also made a decision quickly.

Tang Xingbang, head of the municipal party committee, said: "Iron and steel is the food of industry, and the modernization of the iron and steel industry is of great significance to China's industrial modernization and economic development!"

"The construction of Xinpu Steel's 10 million tons of steel base, through the introduction of advanced technology and the construction of a modern steel plant, has filled the domestic gap, which is of great significance, and is also in line with the industrial development policy of the country and Pujiang City. The city will spare no effort to support such a project, and will also seek support from the central government."

Tang Xingbang made a statement on behalf of the municipal party committee, although other members of the Standing Committee also raised some questions, but did not express opposition, after all, the advantages of this project are there, its core is not the scale, but the introduction of automotive steel, seamless steel pipes and stainless steel and other products are domestic shortage products, nearly 10 million tons of imports per year, as Tang Xingbang said, such a project, the central government and the city will definitely support.

However, even with the strong support of the central government and the city, there are many difficulties in this project, especially in terms of funding. After the meeting, Tang Xingbang met with Xiong Bihong and Bao Feiyang separately and asked them to submit a complete construction plan as soon as possible, and then submit it to the central government to apply for project approval and support.

At the Standing Committee, there was not much controversy over the Xinpu Iron and Steel Base, but on another issue, the controversy was relatively large.

Bao Feiyang proposed: after the relocation of Pudong Iron and Steel Co., Ltd., the place where its current factory is located is located at the junction of Huixun District and Chundong New District, looking at the Chunjiang International Financial Center of Chundong New Area to the south, and facing Jiangwan District across the river to the west.

Bao Feiyang's new plan has been favored by Mayor Yang Chenglin, Executive Vice Mayor Zhou Kunlin and others, but the opposition is also very large.

Zhang Zehu, member of the Standing Committee of the Municipal Party Committee and head of the Chundong New District Party Committee, said: " For the holding of the World Expo, the city and Chundong New District began to plan a few years ago, and now the urban planning and transportation construction of Chundong New District are carried out in accordance with the airport plan, for which we also plan and build the world's first operational maglev train, as well as Pujiang Metro Line 2, the North-South Elevated Road, and even the new terminal of Chundong International Airport If the plan is changed, on the one hand, the previous plan will be changed, and the projects that have been built will lose their role, and on the other hand, they will have to be re-planned. The investment in rebuilding is huge, so I don't think the plan of the World Expo should be changed. ”

Bao Feiyang has already made a report on the joint plan, because it is at the Standing Committee, the report is relatively brief, but the Standing Committee members have a detailed plan in their hands, this plan was entrusted by Bao Feiyang to Chunjiang University, which also has an explanation of the problem raised by Zhang Zehu, Zhang Zehu does not know whether he did not see it, or as if he could not see it, he raised this issue again, and clearly expressed his opposition.

Because it was a discussion by the Standing Committee, Bao Feiyang, who attended the meeting as an observer, was not suitable to speak without instructions from the leadership, but he had more exchanges with Mayor Yang Chenglin and Executive Vice Mayor Zhou Kunlin on the joint plan. Metro Line 2 is the first subway connecting Chundong and Chunxi, the main purpose is to facilitate the traffic on both sides of the Chunjiang River, even if there is no World Expo, the role of Metro Line 2 is huge and indispensable!"

Zhou Kunlin said: "As for the maglev train and the north-south elevated road is similar, the maglev train connects Chundong High-tech Zone and Chundong International Airport, which can allow citizens to go to the airport conveniently and quickly, or let the passengers of the airport quickly enter the city, and the north-south elevated is the traffic artery between the main urban area and the Chundong New District, although these transportation construction can provide more convenient traffic conditions for the airport plan, but even if there is no World Expo, these transportation facilities are very necessary, and there is no waste and idleness." ”