Chapter 366: Earthquake in the Iron and Steel Industry

Of course, Duke's efforts quickly paid off, at least Cai Siqiang was very happy.

"Duke, now the military's orders in Xincheng Special Steel have increased significantly, special steel needs at least 300,000 tons this year, according to the existing production capacity, our production capacity gap is very large, the newly put into production of 100,000 tons of special steel technical transformation project can not meet the requirements, and Qin Tairan is under the military equipment, and now there are several automobile companies, the demand for high-grade steel is also very strong, and now it still relies on imports" Cai Siqiang, who received the news, excitedly found Duke.

"Our new city special steel must further expand production capacity, from the current urgent demand, the new capacity is obviously too cost-effective, I mean we acquire a new medium-sized iron and steel enterprises, and then on this basis for technical transformation, so that we can quickly form a new production capacity."

Although Duke rarely asks about business matters, but it involves a lot of capital operation, Cai Siqiang will always discuss with Duke in advance, although every time Duke is doing things according to his plan, but this is a matter of attitude, Cai Siqiang can cooperate well with Duke, I have to say that he has a very good grasp of the proportion of these details.

Listening to Cai Siqiang's plan, Duke smiled, he has been busy here for so long, it would be strange if Old Man Liu didn't make any moves, such a large-scale purchase order, it is estimated that the military's transformation of existing equipment will not be too small.

Xincheng Special Steel's latest successful development of ultra-high hardness special steel, for the improvement of large main battle equipment armor is immediate, some models that are about to be retired may not move anymore, but the latest model of the main battle tank and other things will definitely be upgraded, this demand alone, at least tens of thousands of tons of special steel.

What's more, the armament company also has its own automobile industry, which is also a huge consumer of special steel. If these orders are handed over to Dushi Heavy Industries, then the business of Dushi Heavy Industries Special Steel will not be able to grow by leaps and bounds.

In this case, of course, you need to work hard.

"You have the final say on business matters," Duke said to Cai Siqiang, "If there are technical matters, I'll solve them." ”

"Hehe, in fact, I already have an acquisition target, Southwest Da Iron and Steel Group, which is a medium-sized iron and steel enterprise, now with an annual output of about 3 million tons of ordinary steel and iron, annual sales of more than 20 billion, profits of about 200 million, net assets of about 4 billion yuan, according to the current price of acquisition, the acquisition investment of about 5 billion to 5.5 billion.

After the acquisition, if about 20 billion yuan is invested in technological transformation, it will be able to form a new special steel production capacity of 800,000 tons within 3 months, plus the original production capacity, Xincheng Special Steel's production capacity in special steel can exceed one million tons; In addition, a production capacity of 100,000 tons has been formed in special alloys. According to the current price, the annual output value of Xincheng Special Steel will exceed 60 billion yuan, and the profit will be more than 12 billion yuan. ”

"Such a good thing, you can do it with your hands" Duke was a little strange, Cai Siqiang said these things in such detail, obviously not without a purpose, "Did you encounter any obstacles?" ”

"It's a genius, you guessed it right, this project is now no problem in the local government and the province, after all, we not only invest a huge scale of funds, GDP is directly expanded several times, and the most important thing is that the tax revenue brought to the local government is dozens of times the original, and the local government is stupid to disagree." Cai Siqiang slapped Duke with a little fart without a trace.

"However, when this merger plan was submitted to the National Development and Reform Commission, it was stuck, because this thing did not conform to the layout of the national steel production capacity. Xincheng Special Steel has not been allowed to expand production capacity. Cai Siqiang said in frustration.

"The provincial and local governments have tried their best to run this project with us, but it is still useless, and the provincial high-level sources said that the executive vice premier in charge of the National Development and Reform Commission has a lot to do with the three major steel groups. If Xincheng Special Steel calmly implements this plan, the market share of high-end steel with high added value will be occupied by Xincheng Special Steel.

You must know that even Baosteel Group, the leading steel company, although its operating income exceeds 300 billion yuan a year, the total profit realized is only about 10 billion yuan. If Xincheng Special Steel is allowed to continue like this, in less than two years, the annual profit champion of the steel industry will soon change hands. So the three major steel groups came together to prevent the NDRC from approving our acquisition plan. ”

Executive Vice Premier, that is one of the nine elders, the power of the existing interest groups in the steel industry is not small, Duke listened to Cai Siqiang's description, only to know that in the more than a month that he has been concentrating on technological breakthroughs, Cai Siqiang has not been idle, and together with the province, he has carried the super boss at the level of the nine elders.

It seems that Mr. Liu is not wrong at all, and now every time SAL takes a step forward, it will encounter huge resistance and strong resistance from existing interest groups.

"Have you contacted Old Man Liu about this?" Duke asked.

"Of course, Mr. Liu's office director personally came forward on behalf of Mr. Liu to talk to the National Development and Reform Commission, but he still encountered a soft nail." Cai Siqiang shook his head and said with a wry smile, "The interests are too big, there are nine elder-level figures behind it, and the National Development and Reform Commission basically has no pressure on the director of the office of Old Man Liu, and if you don't give face, you won't give it." The national industrial layout is in the hands of the National Development and Reform Commission, who can help them? ”

"It's useless for Old Man Liu's office to be dispatched, so what can you do to find me?" When Duke heard Cai Siqiang say this, he also frowned and thought about it.

"Your status in Old Man Liu's mind is different," Cai Siqiang of course knew the agreement between Duke and Old Man Liu, so he said a little bluntly, "Let's go up there to find a relationship, it's usually difficult to even see Old Man Liu's face, so just sending the office director to say hello seems to be a bit of a lack of attention." Therefore, the people of the National Development and Reform Commission took the takeover, and the acquisition was decided. ”

"If you go out to find Mr. Liu in person, it shows that you have a strong determination in this regard, then there is not much problem in pushing Mr. Liu to support him." Cai Siqiang said. In fact, there is still one sentence that has not been said, that is, Cai Siqiang very much hopes that Old Man Liu will use armaments as an excuse to forcefully suppress the submission of the National Development and Reform Commission.

The method Cai Siqiang is very clear, that is, there is no other steel enterprise in China, which can produce several special steel products newly developed by Xincheng Special Steel, and these steels can not be bought even if they are imported, so Mr. Liu They don't say much, just put forward this kind of special steel procurement needs that cannot be bought abroad and can not be produced by other domestic iron and steel enterprises, and report to the No. 1 chief, I believe that the National Development and Reform Commission will definitely not be able to bear it.

It's just that in this way, it is equivalent to Mr. Liu's face being torn apart from the executive vice premier, and the executive vice president is very likely to be promoted to the No. 2 person in the next term.

It is estimated that it is precisely because of the importance of the matter that Mr. Liu will not go out in person, so that the whole scene finally becomes a situation where both sides lose out of control.

From Cai Siqiang's point of view, the merger and acquisition plan of Xincheng Special Steel is of great interest, the total annual output value of the steel industry is as high as more than 3 trillion yuan, although most of it is the red sea market of ordinary steel, but even if there are only more than 10 points and more than 20 points of special steel share, the entire market size of special steel is as high as more than 300 billion or 400 billion yuan.

The most important thing is that the vast majority of profits in the steel market are concentrated in these special steel, with the existing development momentum of Xincheng Special Steel, if the steel is successfully incorporated into Xincheng Special Steel, Cai Siqiang estimates that after the completion of the entire technical transformation project, it will not be long before the sales of Xincheng Special Steel can be doubled again.

In other words, Xincheng Special Steel is likely to run forward in just a few years and quickly enter the 100 billion sales club. For his rivals, it was a nightmare. Ordinary steel production overcapacity has a long history, in this case, the production and sales of ordinary steel together most manufacturers are at a loss, but not to sell it is even more loss-making, so that some iron and steel enterprises are also selling.

The booming business of the steel industry is the result of the domestic infrastructure construction and real estate flood that were in full swing in previous years. Now that the real estate is in a recession, the iron and steel enterprises that rely on real estate construction are obviously beginning to usher in a new round of sluggish demand.

In this case, the high-end special steel market is obviously more important for steel companies. The three giants were originally dominant in this regard, and now they are inserted into the new city special steel, the three steel giants are completely unable to catch up with the new city special steel in terms of product quality and performance, so if the new city special steel comes in to show its skills, then this high-end market has little to do with the three giants.

Faced with such a situation, how can the three giants give in easily?

To be honest, after Duke understood Cai Siqiang's plan, even if he hated this kind of coercive negotiation very much in his heart, but the current situation is like this, if he does not use extraordinary measures, this matter will be delayed indefinitely, and the longer the time, the more unfavorable it will be for Xincheng Special Steel.

When the three giants have dug out the detailed technical information of the development of new materials of Xincheng Special Steel and improved their own production process, Xincheng Special Steel has completely lost this once-in-a-lifetime opportunity for leapfrog development.

Regarding this point, the three giants can see it, and Cai Siqiang can't see it, so Cai Siqiang will continue to insist on preparing for a forced breakthrough when the director of Old Man Liu's office can't handle it.