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Home » FAQs » China's iron and steel industry, the establishment of international production capacity cooperation alliance
China's iron and steel industry, the establishment of international production capacity cooperation alliance
2017-03-25 11:38:46

March 22nd, China's iron and steel industry and international production capacity of the establishment of a joint conference and the convening of a meeting of the Council in Hebei, Tangshan City. Participants generally agreed that the international cooperation capacity of iron and steel industry has a solid foundation, but also has some restrictive problems, the establishment of the alliance will help to strengthen cooperation, standardize the order of competition, is conducive to enhance the quality and level of international cooperation capacity.

Wu Hongliang, deputy director of the national development and Reform Commission, the Department of foreign investment, International Cooperation Center Deputy Director Liu Jianxing, vice president of Chinese iron and Steel Industry Association, Chi Jingdong, President Li Xinchuang, vice president of association of steel metallurgical industry planning and Research Institute, the Deputy Secretary General Chamber of Commerce Wang Lianzhong and long river steel metallurgy group vice chairman Li Guiyang from domestic and abroad and finance and investment more than 300 institutions on behalf of the participants. Steel Association vice president Qu Xiuli chaired the meeting.

Wu Hongliang said that to carry out international cooperation in the production capacity of the steel industry to promote the structural reform of the supply side, to achieve optimal allocation of production capacity, industrial transformation and upgrading and innovation and development of an effective way. Chi Jingdong also pointed out that the steel industry is one of the key areas to promote the international cooperation capacity, productivity advantage accumulation and strong industrial supporting capacity, to carry out international cooperation Chinese steel production capacity to lay a solid foundation.

The development trend of overseas operation of River Steel Group is good. Up to now, the River Steel Group has completed more than 1 billion 100 million U.S. dollars of overseas direct investment, controlling the operation of overseas assets of more than $7 billion, overseas operating income of $14 billion." Li Guiyang introduction, by 2020, the steel group's overseas operating income to reach more than $20 billion, accounting for more than 30% of the group's total operating income."

However, at present, the international cooperation in the production of steel industry is also facing some problems and challenges. Wu Hongliang pointed out that a global iron ore resources has formed a monopoly, Chinese enterprises to obtain high-quality overseas iron ore resources faces after a disadvantage; two is the world's steel production capacity of the overall surplus, the total iron and Steel Co., the international market, steel project in very high demand on resources and facilities, so enterprises identify the market, the difficulty of precision investment the three is relatively large; iron and steel projects are large-scale investment, long period, vulnerable to political, market, environment and security risks; the four is China's iron and steel enterprises in high value-added sectors and international talents are short board; five is the enterprise to go out there and get together to follow the trend of the phenomenon of disorderly competition; the six is the overseas projects from mining, smelting to metal processing, product manufacturing industry layout is still in the initial stage.

How to make international capacity cooperation both go into, and go well? Chi Jingdong stressed that international cooperation should be based on iron and steel production capacity of foreign investment cooperation as the key driven equipment, technology, management and service system of cooperation; cooperation to local economic development and market demand, driven by the local steel industry development and competitiveness.

Li Xinchuang said that China has a sound system of the steel industry, the ability to achieve full engineering design + construction services + technical personnel + capital output of collaborative output. He also stressed that the international cooperation in the production of steel is a development strategy, but not aid projects, to economic efficiency oriented, but also pay attention to tactics to avoid risks.

Wu Hongliang suggested that enterprises should follow the national strategy, combined with railway, electricity, equipment manufacturing and other key steel industry to go out, and in accordance with the requirements of the country's urbanization, industrialization development capacity layout. He also stressed that the enterprises in the process of foreign investment cooperation, to abide by laws and regulations, and resolutely resist the vicious competition, false investment, commercial bribery and environmental pollution behavior, attach great importance to efforts to prevent various risks faced by.

Wang Lianzhong said that the private iron and steel enterprises in the process of "The Belt and Road" and go out, widespread development is not fast enough, the development of fluctuations and benefits and other issues is not obvious. In response to these problems, private steel companies are working to improve. According to his introduction, the current number of private enterprises in Malaysia, Thailand, Vietnam and other 7 countries to invest in the construction of iron and steel enterprises work has entered the preparation or implementation stage, most of the cooperation with the host country, planning a total capacity of about 9 million tons.

China international steel industry production cooperation enterprise alliance was founded by China Steel Industry Association, the chamber of Commerce, Metallurgical Research Institute, metallurgical industry planning China metallurgy newspaper, Chinese Bao Wu group, Anshan Iron and Steel Group, Shougang Group and other 50 units launched. The conference also announced the establishment of the first session of the Council of the league, elected the first session of the Executive Council and board of governors, vice chairman, secretary general, etc..

Chi Jingdong said that the alliance will be the main business, to serve for the purpose, to build a smooth and efficient information exchange platform and work platform, strengthen the sense of self-discipline, standardize the behavior of enterprises going out. He also stressed that the alliance members will be given priority access to project information, give priority to participate in production capacity cooperation projects, priority access to policy and financial support.

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