Li Chongpo, deputy to the National People's Congress and chairman of Hebei Jingye Group, said in an exclusive interview with this reporter during the "two sessions" that during the "Twelfth Five-Year Plan" period, Hebei Jingye Group will continue to develop steel deep processing based on the main business of steel. Take the road of extending the industrial chain.
Deep processing of steel can be done in one fell swoop 　　 Li Chongpo told reporters that in the next few years, Jingye Group plans to build a medium-thick plate into a steel structure, deep processing of hot coiled sheets into cold-rolled sheets, and rebar processing into semi-finished products. Among them, the medium-thick plate processing into steel structure plans to produce 700,000 tons per year, with an investment of more than 300 million yuan; the hot-rolled plate is deep-processed into a cold-rolled plate with an annual output of 2 million tons and an investment of over 2 billion yuan. Li Chongpo said that after entering the mid-industrialization period, the growth rate of steel demand is gradually weakening, and the market demand has reached its peak, and there is a situation of oversupply. In addition, due to national macro-control, energy-saving emission reduction restrictions, steel production is unlikely to grow. In this case, if companies want to continue to do so, they must develop deep processing. The development of deep processing can not only increase production value, increase the added value of steel, but also arrange employment, but also save energy and reduce emissions. "Serve multiple purposes, why not."
Will increase investment in the logistics chain in addition to the development of deep processing, dedicated group also plans to equip Shijiazhuang industrial base construction area of several acres of a logistics park in. Li Chongpo said that the future manufacturing industry should be controlled by the logistics industry. Who has customers, who knows the terminal, who has the right to speak, this is the future trend. And logistics is the closest to the customer. After the logistics is bigger, the manufacturer is likely to become the processing enterprise of the logistics enterprise. In addition, the dedicated group has also been strengthening the transformation of its own distribution channels. Li Chongpo told reporters that Jingye Group has built its own sales team and adopted the direct sales model to sell directly to customers. Can't find a customer, only to find a small agent. He said: "Now the market is not good, the company is required to return to the market, and the market competition will be more intense. Taking the marketing method of direct sales and actively seeking customers is an effective means to develop business." It is understood that Jingye Group is in the company. Within the range of 300 kilometers from the origin, more than 40 direct sales offices have been set up, and nearly 1,000 direct sellers.
In order to better cope with the changes in the market situation, on November 11, 2010, five private steel companies such as Hebei Jingye took the initiative to sign a joint restructuring agreement with Hebei Iron and Steel Group in a “gradual equity integration†model. In this regard, Li Chongpo said: "This decision is correct. Restructuring with state-owned enterprises is conducive to learning the advanced technology and management experience of state-owned enterprises. In addition, it is also conducive to enhancing the concentration of Hebei steel enterprises. The negotiation of ore and the downstream sales are carried out in a coordinated manner. If it is loose, it will not dominate the price and procurement. He also stressed that whether the private enterprise is holding itself or reorganizing with the state-owned enterprise, it should be from the enterprise. Need and long-term development to consider. He said that no matter what method is chosen, it is for the company to develop better. As long as it is beneficial to the development of the company, it should be done. “Private enterprises are like children of private entrepreneurs. Private entrepreneurs hope that their own enterprises have a good development direction and have better development.â€
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