How to deal with the severe situation of the industry? Several steel enterprises talk about future survival

Author 正丰 Published on 2022-07-13 14:52

Since the beginning of this year, due to the complex and severe international situation, multiple domestic epidemics, and the poor operation of the industrial chain and supply chain, the steel market has shown an operating trend of "supply reduction, weak demand, inventory increase, price decline, cost increase, income reduction, and profit decline". The production and operation of enterprises are facing great challenges.
The second half of 2022 has come. How will the steel industry cope with the current severe situation? Recently, several iron and steel enterprises have deployed the work in the second half of the year. The summary of the small edition is as follows:—

CITIC Taifu Special Steel Group
On the afternoon of July 9, he Wenbo, Secretary of the Party committee and executive chairman of China Iron and Steel Association, and his party visited and investigated CITIC Pacific special steel group.
Qian Gang, party secretary and chairman of CITIC Pacific special steel group, introduced the operation and production of CITIC Pacific special steel in the first half of the year to he Wenbo.
Since 2022, CITIC Pacific special steel has been faced with severe challenges such as repeated domestic epidemics, large fluctuations in raw materials, and weak market demand. All employees have overcome difficulties, fought tenaciously, and taken multiple measures to achieve "double victories" in the fight against epidemic disease and production protection and "more than half of the time tasks"; At the same time, CITIC Pacific special steel strives to shoulder the important task of the times of "practicing the national mission and helping the national rejuvenation", concentrating its superior resources to focus on the key materials of the bottleneck.
In the second half of the year, CITIC Pacific special steel will actively respond to market changes. First, it will vigorously reduce various costs and improve quality and efficiency; Second, give further play to the advantages of variety structure; Third, innovation driven, strengthening scientific research support; Fourth, continuously improve the industry competitiveness in the market segment; Fifth, implement the new development concept and promote the double carbon work and digital transformation and upgrading.
In view of the current macro situation and the current situation of the industry, Qian Gang suggested to the association: first, clarify the difference in energy consumption indicators between special steel and ordinary steel; second, promote the subdivision of export tax numbers of high value-added products; and third, accelerate the construction of EPD platform.

Shougang Group 
On July 8, the special study and exchange seminar of the central group of the Party committee of Shougang Group was held, The exchange and discussion were carried out around the theme of "deeply studying and implementing the spirit of the national 'two sessions', the requirements of the Party Central Committee on accelerating the construction of a world-class enterprise, the major decisions and arrangements for the current economic work and the spirit of the 13th Party Congress in Beijing, adhering to the principle of stability, seeking progress while maintaining stability, concentrating on doing our own work, ensuring the completion of the group's annual goals and tasks, and laying a solid foundation for the high-quality development of Shougang".
Zhang Gongyan, Secretary of the Party committee and chairman of Shougang Group, stressed that it is necessary to further integrate thoughts and actions into the major judgments of the Party Central Committee on the current economic situation and the major decisions and arrangements for economic work, deeply understand the new tasks and new requirements put forward by the development of the capital in the new era for Shougang, consciously integrate the work of Shougang into the national strategy and the overall situation of the development of the capital, We will thoroughly find out the gaps and deficiencies in the current work, unify our thinking, strengthen our confidence and inspire our spirit, and intensify efforts to promote the key work determined by the "two sessions" of the group to ensure the completion of the annual goals and tasks.
First, we should adhere to the principle of "stability" and strive for progress in stability, and strive for good business results. To clearly explain the situation and tasks to everyone, the key is to do a good job in the second half of the year. In the face of difficult challenges and arduous and heavy tasks, there is no shortcut to take. The only way is to do all work in a down-to-earth manner, and implement the key tasks and measures specified in the "two sessions" at the beginning of the year in a down-to-earth manner. At this time, the comparison is who is more determined and tenacious, who pays more hard and works harder, and who does more solid and meticulous work. Leading cadres should further enhance their sense of responsibility and responsibility, give full play to their exemplary and leading role, intensify their work, grasp the work more closely, realistically and meticulously, unite and lead the vast number of employees, and unswervingly fulfill this year's budget objectives and tasks.
Second, it is necessary to firmly grasp the main line of the basic work of Shougang's high-quality development, promote the realization of high-quality development and build a world-class enterprise. The year 2022 is the key year to lay a solid foundation for the high-quality development of Shougang. It is necessary to firmly grasp the overall arrangement of "3 + 2" steps around the goals and tasks determined in the "14th five year plan" of Shougang, and work hard to develop and forge ahead. It is necessary to further quantify and refine the evaluation indicators for laying a solid foundation for high-quality development, make the work requirements more specific and in place, solve the problems affecting and restricting the healthy and sustainable development of Shougang, and continuously consolidate the foundation for high-quality development of Shougang.
Third, we should comprehensively strengthen party leadership and Party building, and ensure high-quality development with high-quality party building.   It is necessary to promote the in-depth development of comprehensively and strictly administering the party, fully implement the "two consistency", and give full play to the role of Party committees in guiding the direction, managing the overall situation, and promoting implementation; Promote the deep integration of Party building and production and operation in enterprises, effectively solve the "two skins" problem, and transform organizational strength into productivity and competitiveness; To strengthen the construction of the leading group and talent team, the key is to grasp the implementation of the group's talent work policies and measures, and strive to create the advantage of enterprise talent resources; Strengthen the supervision and inspection of the whole process, ensure the implementation of all decisions and arrangements of the Party committee, and provide a strong political guarantee for the reform and development of enterprises with high-quality party building.
Zhao Minge, deputy secretary of the Party committee and general manager of Shougang Group, pointed out that market competition is the survival of the fittest in combination with the group's business situation in the first half of the year and the situation and tasks in the second half of the year. We should abandon our illusions, wait and rely, adhere to the essence of the enterprise, follow the industry law, market law and enterprise development law, faithfully implement the "eight stresses" business policy, create a comparative competitive advantage, firmly grasp the initiative of survival and development in our hands, and do our best to do all the work in the second half of the year and strive to complete the tasks and objectives of the year.

Shagang Group 
On July 11, at the semi annual working meeting of Shagang Group, Shen bin, Secretary of the Party committee of Shagang Group, executive director of the board of directors and chairman of the company, profoundly analyzed the severe situation faced by the current iron and steel industry, clearly proposed to fully invest, deeply tap the potential, strive to do a good job in reducing cost, saving expenditure, tapping potential and increasing efficiency, and sounded the "rally" of comprehensively reducing cost and increasing efficiency throughout the group.
On July 14, the official wechat official account of Shagang Group published the current review of steel city on "resolutely winning the battle to reduce cost, save expenditure, tap potential and increase efficiency". The article points out that facing the severe crisis and challenge, what should Shagang do? Facing this year's production and operation objectives and tasks, what should Shagang do? Shagang can only answer these important questions related to the survival and development of the enterprise with practical actions, that is, to implement the spirit of the group's semi annual meeting to the letter, to further strengthen the idea of "living a tight life", to act with all staff, to work together, to face difficulties, to go all out, and to resolutely win the battle of reducing costs, reducing expenditure, tapping potential and increasing efficiency.
To win the battle of reducing costs, saving expenditure, tapping potential and increasing efficiency, we must further unify our thinking, improve our understanding, and pool the consensus of the whole staff. The market is down, but the spirit should be more high. All staff and cadres should soberly realize from the depths of their minds that reducing costs and increasing efficiency is not only related to the survival and development of enterprises, but also closely related to the happy life of the employees. This is a tough battle that can not be retreated and lost, but also a life and death battle that must be fought and won. The vast number of staff and cadres should further enhance their sense of crisis, hardship and responsibility, start from now on and from themselves, be good stewards and masters, and devote all their efforts to improving quality and efficiency. It is necessary to vigorously carry forward the spirit of Shagang, set up a more stable benchmark and raise the banner higher, so that the spiritual blood of "self-reliance, hard work, courage to innovate and continuous climbing" will become the strongest driving force and winning magic weapon for overcoming difficulties, strive to blaze a new path for development and jointly create a better future for the enterprise.
In order to win the battle of reducing costs, saving expenditure, tapping potential and increasing efficiency, we must further grasp the key points, make systematic planning, and carry out coordinated and comprehensive progress. Cost reduction and efficiency improvement work is neither "one-third of an acre industry" nor "one day's work". It involves the whole field and whole process of enterprise production and operation. Cost reduction cannot blindly and simply focus on the rise and fall of the cost of a certain link. Instead, it is necessary to jump out of the small circle of the Department and the unit, stand on the height of the overall situation, and systematically see whether the overall cost has decreased. All departments at all levels should form a linkage mechanism to carry out all-round Multi angle integrated cost reduction. It is necessary to strengthen the ability of systematic thinking and be bold in making breakthroughs and innovations. On the one hand, it is necessary to be good at touching the pain points and prying the difficulties. It is necessary to resolutely abandon the idea of "reaching the top of the indicators and digging out the potential" and think about new ways to reduce costs and increase efficiency with a new way of thinking; On the other hand, we should not limit ourselves to the previous areas of cost reduction and efficiency increase, but seek benefits from those areas that have not yet been developed and never been involved, so as to ensure greater breakthroughs in cost reduction and efficiency increase.
To win the battle of reducing costs, saving expenditure, tapping potential and increasing efficiency, we must further grasp implementation, take the initiative and strengthen organizational leadership. As participants, practitioners, decision makers and commanders of cost reduction and efficiency improvement, leaders at all levels must be brave, set an example, grasp implementation and seek development. In the face of crisis, we should not only have the idea of wanting to do something and accomplish something, but also have the courage to work hard and take responsibility. We should also have new ideas to do a good job, new ways to do a good job, and new methods to solve problems; In the face of difficulties, we should take the lead, set an example, take the lead in inspiring our spirit, and muster up all our energy to ensure that our thinking is not relaxed, our strength is not reduced, and our steps are not stopped; In the face of the goal, we should adhere to the problem-oriented approach, implement it step by step, promote it step by step, and solve it one by one. We should really grasp and manage it and achieve real results.
In order to win the battle of reducing costs, saving expenditure, tapping potential and increasing efficiency, we must further mobilize all employees, innovate and create efficiency, and pool collective wisdom. Everyone can reduce costs and increase efficiency. No matter it is the innovation of production technology and process equipment, the optimization of relevant processes and business links, the exploration of the potential of management departments and personnel, and the employees' efforts to reduce costs and expenses in their daily work, any link in the enterprise value chain can be a breakthrough point for reducing costs and increasing efficiency. The vast number of staff and cadres should actively participate in the activities of reducing costs and increasing efficiency, actively explore new methods and new ways to improve work quality and operational efficiency, give ideas and think of ways in small-scale reform, innovation, repairing the old and recycling the waste, and let the "small ideas" in work become "golden ideas" for reducing costs and increasing efficiency; It is necessary to strengthen the sense of responsibility and mission of the master, start from the post, from the side, and from the bit by bit, consciously develop the good habit of diligence and thrift, and create a good atmosphere of "everyone saves, everything saves, and everywhere saves" throughout the enterprise.
Reducing costs and increasing efficiency is a road of continuous progress in the face of challenges, a road of continuous transcendence in innovation, and a road of Nirvana that must be experienced in the process of butterfly change, leap forward and leapfrog development. As long as Shagang has one heart and one mind, the cadres and the masses work together, and make concerted efforts, we will surely win the battle of cost reduction and efficiency improvement, and continue to write a new miracle of Shagang's high-quality development!

Hunan Iron and Steel Group
On July 6, the mid year work meeting and benchmarking exchange meeting of Hunan Iron and steel group was held in Henggang. In view of the severe situation of the current iron and steel industry, we will deploy and implement a series of measures to clarify the situation, determine measures, fight the crisis and ensure survival, mobilize all employees, throw away their illusions, fight against the back of the water, strengthen confidence and overcome the crisis.
The meeting demanded that the whole group must fully understand the current situation, change its thinking from "good life" to "tight life" and "hard life", take resolute and effective measures, strengthen confidence, discard illusions, and vigorously implement the plan to fight the crisis and ensure its survival. In any case, it is necessary to ensure stable production before iron and steel, and adjust the structure after steel, so as to ensure that the profitability of the group company is above the average "lifeline" of the industry. We will strengthen the market-oriented concept, stop the production of loss making products, and limit the production of low profit products. The sales department shall dispatch all staff to grab orders and improve the effective variety increment. We will focus on promoting the mutual supply and complementation of large raw fuels such as imported ore and coking coal, and ensure that the group's raw fuel inventory is minimized while maintaining normal production. Continuously improve the production organization capacity and comprehensively reduce the inventory of finished products and semi-finished products.

Benxi Steel Group
On July 12, Benxi Iron and Steel Group held the production and operation coordination meeting in June and the production and operation analysis meeting in the first half of the year, comprehensively analyzed and summarized the production and operation situation in June and the first half of the year, objectively analyzed the existing problems and weaknesses, carefully studied and judged the current production and operation situation, and arranged the key work of production and operation in the second half of the year.
Yang Wei, Secretary of the Party committee and chairman of the board of directors of Benxi Iron and Steel Group, affirmed the achievements made in the production and operation of Benxi Iron and Steel Group in June and the first half of the year. On the basis of summarizing the highlights, analyzing the problems and analyzing the situation, he clarified the ideas of production and operation in the next stage.
Yang Wei demanded that in view of the new market situation, we should not only be full of confidence, but also face problems squarely. Since the restructuring of Anshan Benxi Iron and Steel Group, great achievements have been made in the key work of "two systems and one contract", reducing the occupation of "two funds", managing loss making enterprises, improving the labor productivity of all employees, and standardizing the operation of subsidiaries. However, at the same time, we should face up to the existing shortcomings, focus on the difficulties, and work in a down-to-earth and step-by-step manner in terms of asset liability ratio and adjustment index to overcome difficulties and achieve new breakthroughs.
Yang Wei stressed that it is not only necessary to sum up experience, achievements and shortcomings, but also to anchor the annual goals. All departments and units should do a good job in summing up the work, refining the highlights, taking the "model" as the guide, and fully promote the high-quality development of the enterprise. It is necessary to anchor the annual goal, take the problem as the guide, take the mission and responsibility, and run out of the "acceleration" of Benxi Iron and Steel Group in the assessment objectives of "two systems and one contract" such as informatization construction, ultra-low emission project transformation and cost reduction.
Yang Wei demanded that we not only sell our products at a good price, but also pay close attention to reducing costs. The sales system should further develop the market, and each finished product factory should set off a climax of "running to the market". All units shall fully compare with the "five places of Angang" and the advanced level of the industry, and pay close attention to the quality and sales of automobile plates. The financial system should fully explore the space for cost reduction, establish the cost reduction concept of "three drops of water should be wrung out of a dry towel", and achieve the "extreme" of cost reduction.
Yang Wei stressed that we should not only do a good job in reform in a steady manner, but also ensure the stability of production safety and letters and visits. Party committees at all levels should follow the three-year action of state-owned enterprise reform and the deployment requirements of Anshan Iron and Steel Group, and advance step by step, steadily and forcefully. In view of the three system reforms, it is necessary to have the determination to overcome difficulties, resolutely clean up such behaviors as "going to work shift" and "taking sick patients", so that employees can have a correct understanding of the reform and finally enjoy the dividends of the reform. The party and government should take the same responsibility for safety work, and one post should take double responsibilities. According to the "steel 8", we should quickly rectify safety problems and intensify the investigation of potential safety hazards. We should do a good job in public opinion control and create a safe and stable production environment for the high-quality development of enterprises.

Angang Group
Shaanxi steel Longgang
On July 11, Longgang company of Shaanxi iron and Steel Group held a weekly regular meeting. At the meeting, Chen Xiao, Secretary of the Party committee and chairman of the board of directors of Longgang company of Shaanxi iron and Steel Group, stressed the importance of grasping all recent work.
He pointed out that in the face of the current severe market situation, there are many difficulties and great challenges. All units should take multiple measures to improve operation efficiency and quality, control the company's losses within the fixed expenses, and achieve the goal of positive marginal contribution. It is also required that all units should focus on three aspects: first, the production of each process should give full play to the maximum utility of on-line equipment, and the consumption of off-line equipment should be controlled to ensure the tight balance of the production system and improve the production and operation efficiency. It is necessary to comprehensively and thoroughly implement the cost reduction and efficiency increase measures, achieve the right direction and implementation in place, timely revise the cost reduction and efficiency increase measures through benchmarking, and realize low smelting strength, low consumption, low cost and efficient operation; Second, the supply and sales side should realize integrated cost reduction, the supply side should reduce costs, and the sales side should increase efficiency. The purchasing end should keep a close eye on the market, continue to reduce prices, control the pace, obtain opportunities and hedge costs; The sales side should actively cooperate with Xi'an branch to stabilize and increase the price and fully release the brand value and effect; Third, internal management should be refined, firmly establish the idea of "living a tight life", practice strict economy, strictly control expenses, and strengthen the awareness of "saving is also reducing costs". At the same time, it is necessary to strengthen equipment management, improve management level, and strengthen assessment and supervision. The recent equipment accidents in the iron making plant have fully exposed that the management, operation and work style are not strict enough. It is necessary to analyze deeply, find the crux of the problem, summarize it in time, deal with it seriously, learn from the lessons, take lessons from it, improve the technical skills of the staff, have the spirit of self denial, and take the refined management as the guarantee and support for the stable and smooth production. All production and support units should start from the cost reduction of the whole system, pay strict, practical and meticulous attention to management, and achieve the goal of "production system stability is the greatest cost reduction".

Xingcheng Special Steel
Luo Yuandong, Secretary of the Party committee and general manager of Xingcheng Special Steel, said that in the second half of the year, Xingcheng Special Steel will take the maximization of benefits as the goal, further pool consensus, be vigilant in times of peace, adhere to the two core indicators of "cost and profit", adhere to the three red lines of "safety, environmental protection and quality", and focus on Party building, safe and efficient production, cost reduction and efficiency improvement, product R & D innovation, and style construction, We will strive to exceed the annual business objectives by "ensuring the season by month and the year by season".

Xingang group
On July 1, Liu Jianrong, Secretary of the Party committee and chairman of Xingang group, said that in the face of this round of cruel market competition, Xingang must firmly grasp the optimization and improvement of varieties. The current sudden change in the steel market has weakened the profitability of the steel industry. A new round of cruel market competition has come. In the end, who can survive is the one who has better quality brand, flexible coping style and stronger profitability.
In view of this round of fierce market competition, the company's business strategy, cost control and other work in the second half of the year should be significantly adjusted. In this transformation, all plant departments of the company should actively change their concepts, strengthen the awareness of the whole company to play chess, calculate less small accounts and more large accounts, and do a good job in key aspects such as variety and cost.

Tiangong International
Recently, Zhu Xiaokun, chairman of the board of directors of Tiangong international, said that efficiency is fundamental to enterprise operation. It is an important way to improve economic benefits to seek benefits from quality, seek development from quality and grasp the yield of finished products.
Zhu Xiaokun pointed out: there is still a lot of room for the increase of product yield, and the economic benefits of each point are very objective. Therefore, starting from the second half of this year, all management personnel and front-line employees must focus on improving the rate of finished products and take improving the rate of finished products as the main goal. It means to be precise and meticulous, to control large costs from "small accounting", to achieve strict management and control from "small indicators", to make full use of the role of assessment lever, to strictly grasp benefits, reduce costs and increase efficiency, and to take the goal of improving 5% yield as the core of work.
First, on the premise of stable and good quality, continue to improve the year-end yield index of products; The second is to use three months to carry out all-round transformation, comprehensively tackle, improve and standardize the equipment, process and operation, guide the correct operation of employees through repeated training, further change the quality awareness of employees, and ensure that the rate of finished products is not less than 3%; The third is to make use of half a year's time and the joint efforts of all day workers to achieve the goal of 5% increase in the rate of finished products in the second half of the year over the first half of the year!

Huaigang company
Chen Jianlong, Secretary of the Discipline Inspection Commission and chairman of the trade union of Huaigang, pointed out that the current situation in the iron and steel industry is extremely grim. Most of the iron and steel enterprises have entered the state of loss, and Huaigang has not been able to "escape from it.". In the face of the severe market situation, Huaihua iron and Steel Co., Ltd. has no choice but to unite as one, bite the teeth and stick to it, and only to focus on "internal skill", optimize the production organization, refine the cost reduction and expenditure saving, and "tighten the belt" to "survive the winter".

Yonggang group
Wu Yi, President of yongzhuo holdings and President of Yonggang group, said that it is necessary to reduce the business risks of enterprises and carry out "counter cycle" layout.
First, we are committed to refining and strengthening the main steel industry. We have strengthened innovation and research and development. The product structure has changed from ordinary steel to high-quality and special steel. We have upgraded from "manufacturer" to "service provider". Now, the proportion of high-quality steel products exceeds 70%, and they are sold to 29 provinces (regions and cities) in China and 112 countries and regions in the world; Second, extend the upstream and downstream industrial chain of steel. The upstream invests in the distribution of coke, iron ore and other raw material resources, and the downstream cultivates specialized, special and new enterprises to produce high value-added products such as die forgings and special welding materials, and solve the bottleneck problem; Third, we will lay out the financial and trade industries.

Huahong steel Jinyun Yuxin
On July 6, the special meeting on precision service of steel industry enterprises jointly led by Lishui Economic and Information Bureau and Lishui Construction Bureau was held. Yunhe Huahong steel, Jinyun Yuxin industry and construction enterprises had face-to-face exchanges. At present, the inventory of the two enterprises is high and the enterprise pressure is high, which affects the normal operation of the enterprises. After listening to the introduction of the enterprises, the 10 leading enterprises in the construction industry and the state-owned investment companies directly under the city said that the construction project has actual demand for steel products, and the products of steel enterprises in Lishui have price advantages, so it is necessary to increase communication with the two steel enterprises and try to support the products of Lishui steel enterprises.

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