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Why are the backward production capacity of steel more and more? Editor's note / Excess steel production capacity has caused the relevant national ministries and commissions to jointly issue the "iron fist" elimination order several times, but the steel production capacity has appeared more and more. The data show that China's steel production capacity in 2009 was 720 million tons, 2010 It will reach 770 million tons in the year. By 2011, this figure will exceed 790 million tons, while the market demand is only 470 million tons, with a surplus of 220 million tons. Why are the backward production capacity of steel more and more? The chaos of steel enterprises in Wu'an City, Hebei Province, can give an answer. Wu'an City, Hebei Province is a well-known steel town in the country. In 2010, Wu'an produced an annual output of 17 million tons of crude steel. There are nearly 20 steel companies of different sizes, which is one of the main production bases of crude steel. At the same time, Wu'an is also The country’s previous key targets for the regulation and elimination of backward steel production capacity, but the country’s regulation and control policy seems to have “ineffective†in Wu’an. Most of the small and medium-sized steel enterprises in Wu’an have not been affected by the regulatory policies. Instead, they use regulatory policies to expand production capacity and unplug small The blast furnace was replaced by a large blast furnace, and the steel production capacity here was arrogant. The China Business News reporter learned through investigation that most of the steel production capacity here has not been approved by the National Development and Reform Commission. Why is there such a chaos in Hebei Wu’an iron and steel enterprises, and why are there so many illegal production capacity? Recently, the reporter went deep into Wu'an and analyzed it one by one. At noon, at the gate of Xinshan Iron and Steel Company in Wu'an City, Hebei Province, workers who came off work rushed out from the gate. Many people screamed at the factory door and seemed to want to breathe out the dust that was sucked into the lungs in the morning. Xinshan Iron & Steel Co., Ltd. is located in Cishan Town, Wu'an City, Hebei Province. Due to the rich ore resources, there are only three steel plants in this town. The whole town is almost surrounded by steel plants. Wu'an City is a county-level city under the jurisdiction of Hebei Province. It has 18 private steel enterprises. The steel output in 2009 was 16.36 million tons, accounting for one-tenth of the steel output of Hebei Province, the country's largest steel province. The contribution rate of steel enterprises to Wu'an's GDP is as high as 70%, and only the steel industry's main employees account for 10% of the local population. Wu'an is known as the “steel and steel town†in Hebei. However, due to the large number of small and medium-sized steel mills and serious overcapacity, Wu'an is not only the target of key supervision of relevant state departments in Hebei. Under the pressure of strict control of steel production capacity in the country, Wu'an has indeed eliminated many backward production capacity in recent years. On the other hand, there are also many steel plants that are driven by the interests of the top, and some steel companies have expanded their production capacity by transforming old furnaces. There is even a phenomenon of “false integration†of enterprises and the evasion of policies. Whether the expansion is approved, no one knows from the road to Wu'an, the blast furnace of more than a dozen steel plants stands tall, braving the thick white smoke, the sky is like being covered with thick white yarn, the pungent smell is blowing Come, a truck full of coal and steel whizzed past the road. Xinshan Iron and Steel Company was founded in 1989 and put into production in October 1990. In the 2010 Ministry of Industry and Information Technology, the list of 175 iron-making enterprises that eliminated backward production capacity was listed. The Xinshan Iron and Steel Company was shut down with a 230-m3 blast furnace. According to the public information of the Wu'an Municipal Government Network, in 2008, Xinshan Iron and Steel Company had only three blast furnaces of 128 cubic meters, 230 cubic meters and 320 cubic meters, and a coking plant. After 2008, the plant expanded one of the blast furnaces to nearly 600 cubic meters, and this expansion is strictly prohibited by the state, because the expansion of the blast furnace is a capacity expansion, and the new expansion capacity must be approved by the National Development and Reform Commission. According to the "Steel Industry Policy" issued by the State Council in July 2005, the new production capacity in each region must be combined with the elimination of backward production capacity. In principle, the steel production capacity will not be greatly expanded. At the same time, it is necessary to speed up the phase-out and prohibit the construction of converters and electric furnaces with a capacity of 300 cubic meters or less and a nominal capacity of 20 tons or less. In response to the situation of water shortage and low level of overcapacity in North China, the policy also emphasizes that the North China region should focus on mergers and acquisitions, and strictly control the continued growth of steel production plants and capacity expansion. In May 2009, the National Development and Reform Commission issued a document to mention the elimination of backward production capacity. The steel industry is required to complete the elimination of blast furnace capacity of 300 cubic meters and below and the capacity of converters and electric furnaces of 20 tons and below by the end of 2010. In June last year, the State Council issued a number of "Opinions on Further Strengthening Energy Saving and Emission Reduction to Accelerate the Structural Adjustment of the Iron and Steel Industry", which also mentioned "no steel projects that will no longer approve and record any capacity expansion before 2011." As for the capacity expansion of Xinshan Iron and Steel Co., Ltd., whether it was approved by the National Development and Reform Commission, when the reporter asked the general manager of the company, He Hongbing, he said that he did not know about the situation. At that time, the expansion was approved by any department, and it was really unclear. At the same time, he also said that in Wu'an, many small blast furnaces with a capacity of less than 300 cubic meters have been changed to blast furnaces of 400, 500 and 600 cubic meters. "If these blast furnaces are closed according to regulations, enterprises will not be able to live." "He said. Ma Luchang, head of the Industrial Section of the Wu'an Development and Reform Bureau, said in an interview with this reporter that Wu'an attaches great importance to the elimination of backward production capacity, but does not rule out the situation of some small and medium-sized steel mills increasing production and expansion in disguise. Subsequently, the reporter contacted the Hebei Provincial Development and Reform Commission to verify whether Xinshan Iron and Steel's capacity expansion has been approved, but the relevant people also said that they did not know, and the same answer was obtained for the National Development and Reform Commission. The illegal production capacity is almost “spreading everywhere†in Wu'an, and the steel plant that has increased production through expansion has more than one Xinshan family. Wu'an another large private steel plant Wen'an Iron and Steel Group, according to public information, in 2008, the steel mill originally had only 540 cubic meters of blast furnace, 320 cubic meters of blast furnace, 230 cubic meters of blast furnace, 50 tons of steelmaking converter Two, 35-ton steel-making converters, with an annual production capacity of 1.2 million tons of iron and 1.2 million tons of steel billets. However, in order to expand production capacity, the plant has launched a 1080 cubic meter blast furnace after 2008. The annual production of pig iron has increased to 2 million tons. In 2009, the plant has also planned to build a cold rolled electrical steel sheet with an annual output of 600,000 tons. In addition, Wu'an Xinhui Company, Yuhua Company, Mingfang Company, Jinding Heavy Industry and other well-known steel companies in Wu'an also have different levels of expansion. Our reporter learned through the Wu'an Municipal Development and Reform Bureau that on November 25 last year, Wu'an sealed up the illegal production capacity projects of eight blast furnaces in seven enterprises. These blast furnaces are produced at an annual output of several hundred thousand tons, including a 1080 cubic meter blast furnace from Xinhui Company, two 1080 cubic meters blast furnaces from Yuhua Company, a 1080 cubic meter blast furnace in Wen'an, a 1080 cubic meter blast furnace in Mingfang, and a melting furnace. 1080 cubic meters of blast furnace, Jinding Heavy Industry, a 1080 cubic meter blast furnace, Guangyao casting industry, an 800 cubic meter blast furnace. "Many of these blast furnaces were built to avoid being eliminated from small furnaces, but these sealed blast furnaces are just the tip of the iceberg. The blast furnaces like expansion are still in mass production and have not been approved by the National Development and Reform Commission." One did not want to be named The person in charge of the local steel company told this reporter. Regarding the situation of the person in charge of the steel company, when the reporter asked Ma Luchang for verification, he refused to answer. Wu Zengjun, director of the Wu'an Municipal Development and Reform Commission, also refused to answer any questions from the reporter. “The blast furnaces that have been named by the state and the provinces have indeed closed a lot, but at the same time, the phenomenon of disguised expansion, expansion and expansion of the furnace is spreading everywhere. These expansions are all illegal production capacity, all belong to steel’ Black households." said the head of a closed steel plant in Wu'an, Hebei. According to Ma Luchang, according to Wu’an’s “Twelfth Five-Year Planâ€, Wu’an’s steel production capacity is expected to increase to 22 million tons at the end of the “Twelfth Five-Year Planâ€. At the end of last year, Wu'an had a total steel production capacity of nearly 17 million tons, which means that Wu'an will add 5 million tons of capacity in the next five years. “Steel is the pillar industry of Wu’an. For some small steel mills that fail to approve the production capacity, the Wu’an local government is also blinding one eye,†said a senior executive of a large steel enterprise group in Hebei. However, for this statement, Wu'an local officials do not agree with it. "Unapproved construction is a common phenomenon in the steel industry. On the one hand, in order to develop, on the one hand, it must withstand the pressure brought by the state's regulatory policies. Many seem to violate the rules. The phenomenon is not only the responsibility of the local government," said a Wuan local government official who did not want to be named. The "fake reorganization" was circumvented by reporters and found that in order to avoid being "regulated" by state policies, Hebei Province began to see the phenomenon of private enterprises escaping policy risks. Wu'an, the "steel town", is no exception. As early as 2006, Puyang Iron and Steel, Wenfeng Iron and Steel, Wen'an Iron and Steel, Mingfang Iron and Steel, Xinjin Iron and Steel and other 12 Wu'an local well-known steel plants set up the new Wu'an Iron and Steel Group, and most of these steel plants before the formation of the annual production capacity of 1 million to 3 million Tons of small and medium-sized private steel mills. However, after the formation, the capacity of the Xinwuan Iron and Steel Group expanded rapidly. According to the China Iron and Steel Association's 2009 top 10 list of domestic crude steel production, Xinwu'an crude steel output in 2009 was 16.71 million tons, with production capacity ranking eighth in the country, and pig iron and steel production ranked eighth and ninth. The added value is second only to Anshun Group and Hebei Iron and Steel ( 3.91 , 0.03 , 0.77% ) Group, ranking third. Although the integration was promoted by the government, the companies still managed separately after integration, and did not involve the integration of equity and personnel. "The large-scale production capacity is more than 1 million tons, and the small production capacity is several hundred thousand tons. The production capacity standard has been migrating around the national regulation and control line of life and death, and it may become the object of regulation at any time. In addition to the joint, Xinwuan has no way out." An insider of the group said. After the establishment of the new Wu'an, the problems of energy conservation, emission reduction and overcapacity that existed in the previous subsidiaries have not changed. Among the 66 emission reduction projects that were not completed on time in Hebei Province in the first half of 2008, several companies such as Wenfeng, Mingfang, Puyang, Yuanbaoshan, Xinjin Steel, Xinshan and Xinghua under the Xinwuan Group were in the company. Column. In the assessment of Handan City in 2009, Yuhua Iron and Steel and Xinjin Iron & Steel Co., Ltd. under the New Wu'an Group, because of the large gap in energy-saving technology reform, the energy-saving targets were not implemented, the equipment was still in operation, and the energy consumption indicators were not up to standard. After entering the energy conservation assessment, enter the list of enterprises. Regarding the integration of the new Wu'an Group, the Wu'an Municipal Government has been promoting this in recent years, but there has been little substantive progress, and each company is actually operating independently. The office of Xinwu'an is located in the office building of Wen'an Iron and Steel Group in Wu'an City. In the office on the 5th floor, the office of the chairman's office is closed for many years. Only the staff of the audit department of the new Wu'an Iron and Steel Group and the finance department are in the office. Wan Xihe, the current president of the Wu'an Iron and Steel Enterprise Association and the chairman of the New Wu'an Group, has long served as the deputy mayor of Wu'an City in charge of industry. "After the formation, it did not really realize the substantive integration of human property, production, supply and marketing integration, but only established a basic framework and achieved unified planning and unified dispatching." An insider of the above-mentioned new Wu'an Group said that the chairman is actually a leisurely job. Generally, I rarely come here to work. Wu’an’s 2009 and 2010 government work reports all mentioned the work of promoting the integration of the new Wu’an Group. In the 2010 government work report, it was clearly stated that “the new Wu’an Steel Group has been formedâ€. , unified declaration of projects, unified procurement of raw materials, unified spare parts supply, unified product marketing, unified mine exploration, speeding up the transition from 'loose' to 'tight'.†“New Wu’an is actually a “fake restructuringâ€, just In order to avoid policy risks, a person familiar with the Xinwuan Group said, “Because some private enterprises have not approved the state during the construction of steel projects, the government is now scrutinizing the 'black projects' and 'black accounts'. Exclude some companies to find a legal umbrella for the project in this way, and once the policy is relaxed, private enterprises that still have controlling rights are likely to still choose their own battles.†Our reporter called the new Wu’an Group on March 26th. Inquiring about the progress of the restructuring, a staff member of the new Jinsteel Company involved in the restructuring said that so far, Xinjin Steel has been operating independently. And after what turned Vinci phone calls from reporters, he expressed to talk about the matter later, and in a hurry to hang up the phone.