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The Hebei Province's work conference on capacity-shifting structure and turning energy was held in Shijiazhuang. The “Hebei Province Steel Industry De-capacity Work Plan (2018-2020)” was issued at the meeting. The plan set a goal for the Hebei steel industry to go to production capacity:
In 2018, the steel production capacity will be reduced by 12 million tons. In 2019, the pressure will be reduced by 14 million tons. In 2020, the pressure will be reduced by about 14 million tons. By the end of 2020, the province's steel production capacity will be controlled within 200 million tons.
As the main battlefield for national production capacity, Hebei Province undertook a one-third reduction in the national steel industry during the “Thirteenth Five-Year Plan” period.
De-capacity is the responsibility of Hebei enterprises. "Enterprises are a cell of society, and they are not responsive to the government's call for responsibility. Especially the decision-making at the national strategic level of capacity and restructuring is not just for us. Every company in the country must implement it." Han Jingyuan, chairman of Hebei Jinxi Iron and Steel Group Co., Ltd. Say.
At today's meeting, Yu Yong, Chairman of Hebei Iron and Steel Group and Han Jingyuan, Chairman of Hebei Jinxi Iron and Steel Group, respectively, made statements and introduced the experience of enterprises in de-capacity. They said they should be brave and take the lead. After that, Yu Yong and the governor of Hebei Province signed a responsibility letter for capacity to implement the main responsibility of the enterprise.
As the “leader” of Hebei Province's iron and steel enterprises to produce capacity, Hegang Group handed in a satisfactory transcript in 2017: “Complete the 2016-2017 pressure reduction capacity task ahead of the “Thirteenth Five-Year Plan”. The production capacity of iron and steel in the province was 11.98 million tons and 10.25 million tons respectively lower than the end of the 12th Five-Year Plan."
It is reported that Hebei Iron and Steel Group Steel has vigorously developed the non-steel industry by extending the industrial chain. Hegang Group has deepened its strategic cooperation with high-end customers, continuously cultivated and deepened the deep processing and new materials industries, efficiently revitalized non-steel assets, activated steel-derived resources, and became an industry brand in energy, environmental protection, equipment manufacturing, and rare gas industries. At present, Hegang Group owns 111 non-steel units, with nearly 50,000 employees on the job. In 2017, it achieved operating income of 75.2 billion yuan and digested labor costs of 4.6 billion yuan.
The production capacity should be reduced, the industry should be upgraded, and the benefits should be improved. The production capacity can enable enterprises to abandon the scale path and focus more on high-quality development, from pursuing scale to pursuing quality and efficiency.” When going to the experience of capacity, Yu Yong said, “There will be some short-term difficulties in de-capacity, especially the path dependence, but it has the future development. Through the practice of Hegang’s capacity in recent years, I deeply feel De-capacity will bring a new development path to the company and a new development model."
A few days ago, Wang Dongfeng, secretary of the provincial party committee, said in the investigation of Hegang Group's Handan Iron and Steel Co., Ltd., "We must go to production capacity with the determination of the strong man to break the wrist." This resolute and decisive attitude comes from a clear understanding of the pain that will inevitably bring about Hebei's production capacity.
"De-capacity will inevitably go through a period of pain. This kind of pain is the inevitable result of structural adjustment. But after the pain, it will bring more healthy development and high-quality development to the country and enterprises. This is the meaning of pain." Hebei Han Jingyuan, chairman of Jinxi Iron and Steel Group, is outspoken about the pain in the process of going to capacity. "And our company should take the initiative to adapt, take the initiative to adjust and take the initiative to meet the pain. The painful process will bring more opportunities to the enterprise. To make the corporate structure more optimized and more competitive."
According to reports, Jinxi Iron and Steel Group adheres to the two modes of “entering emerging industries” and “optimizing traditional industries” to offset the pain caused by de-capacity. Jinxi Iron and Steel Group has entered the field of integrated circuit chips, cultivating new kinetic energy in the emerging sector and creating an international top-notch high-tech enterprise integrating semiconductor equipment and software development. At the same time, we will strengthen and strengthen the steel industry, build the world's largest steel production base, and further extend the industrial chain, develop steel structure assembly buildings, and achieve green and high-quality development.