Shanshan Iron and Steel Group: Transforming and Sailing

In 2011, Shansteel Group produced 23.8 million tons of steel, 24.9 million tons of iron and 22.8 million tons of steel, ranked 73rd among the top 500 Chinese enterprises in 2011, ranking eighth in the nation's iron and steel enterprises; The 146th place ranks sixth in the nation's iron and steel enterprises and ranks fourth among the top 100 Shandong companies in 2011. It has been identified by the country as the first “resource-saving and environment-friendly” pilot enterprise. Shansteel Group is strongly accelerating its transformation and development and writing a new chapter in the green steel economy.

During the “Twelfth Five-Year Plan” period, Shanxi Iron & Steel Group is leveraging on the construction of this green engine in Shandong Province's steel structural adjustment pilot province, striving to build the company into a rational layout, product optimization, advanced technology, environmental friendliness, development coordination, and international competitiveness The world's top steel companies.

"Entire" new vitality "together" a new atmosphere

Group management is improving day by day. Since the establishment of Shansteel Group in 2008, all subsidiaries have unified the thoughts of the cadres and staff with the decision-making and deployment of the provincial party committee and the provincial government and the “7.22” conference spirit. Leaders at all levels conscientiously responded to the requirements of the times and firmly established the direction of the integrated operation of the group, which effectively promoted the substantive reorganization and integration. In accordance with the requirements that the Group must become a real entity, a series of rules and regulations such as the Group's management and control model combined with “strategic management and control” shall be defined, and a series of rules and regulations such as the “Group Management and Control Rules” shall be formulated, and a more systematic and complete performance assessment shall be established and improved. Evaluation System. Accelerated the reorganization and integration of key resources and core businesses, established five centers for fund, procurement, sales, operation and coordination, and informatization, and iron and steel research institutes, and initially achieved planning, investment, finance, personnel, procurement, sales, R&D, and informationization. Uniform management of such aspects. The Group's management and control system has been further improved, its marketing synergies have been greatly improved, and its cost control capabilities have been significantly enhanced.

New breakthroughs were made in asset restructuring. In the past three years, Shansteel Group has actively and steadily promoted the reorganization of assets in the main steel industry. Jinan Steel and Laiwu Steel have also reviewed and approved the assets reorganization plans of two listed companies, and are designing the organizational structure and operation model of Shanshan Iron & Steel Co., Ltd. In order to improve the company's capital management level, on the basis of the capital center, the application for the preparation of the financial company will be approved by the China Banking Regulatory Commission and will be opened soon. Implement industrial restructuring and reorganization, and optimize 242 households holding and participating companies. Through reorganization and integration, the advantages of group operation gradually emerged, the power of market discourse and resource allocation was significantly enhanced, and the influence of enterprises was significantly improved.

Development ideas and goals are more clear. After scientific analysis and prudent decision-making, Shanshan Iron and Steel Group has determined the development strategy of “prominent coastal, optimized inland, equal emphasis on both quality and scale”, “one industry is exceptionally strong and relevant”, and the “industry is modern and international”. Competitive and world-class steel enterprises will become the top 10 international steel companies by 2020 and become the outstanding enterprises in the world's top 500 companies. In a timely manner, he put forward the following four relations: “Strengthening the awareness of crisis awareness, strengthening confidence, crisis and opportunities, the immediate and long-term, and the local and the overall situation in terms of development thinking; and proceeding from the bigger to the stronger and the inland-oriented. Four changes have taken place in the coastal area, from decentralized development to centralized development, from self-accumulating rolling development to modular development; and in terms of development momentum, four reforms have been made in the company system, industrial structure, organizational structure, and three systems.

The Group’s strategic plan has been continuously improved. In the past three years, Shansteel Group has implemented unified management of strategic plans and planned management of internal and external investments. Based on the relationship of property rights, it strengthened the monitoring and management of investment operations, and raised the awareness of asset management of enterprises and the awareness of returning shareholders. Formulate resource protection plans, acquire and control strategic resources both inside and outside the sea, and establish long-term strategic cooperation relationships with coal and mining companies. After the construction of the Rizhao Steel Fine Arts Base was included in the adjustment and revitalization plan of the national steel industry, the pre-project work was actively carried out. Shandong's steel industry restructuring pilot program was approved by the state, marking a new historical period for the development of Shansteel Group.

"Transfer" to Xintiandi "adjust" new strength

Shansteel Group has constantly accelerated the pace of transformation of development methods and structural adjustments in order to achieve sustainable development. From 2008 to 2010, steel, iron, and steel production ranked the top seven in the industry, and total profit was among the top five in the nation's key steel companies. The corporate credit rating and debt credit rating rose from AA+ to AAA. The rating outlook is stable, and the market discourse right is further enhanced.

Vigorously develop circular economy. The utilization of residual heat and residual energy in Shansteel Group increased from 3.6 billion kWh in 2008 to 5.6 billion kWh in 2011, an increase of 55%. Technical and economic indicators such as comprehensive energy consumption per ton of steel and energy consumption per 10,000 yuan were continuously improved. Conscientiously implemented the responsibility system for eliminating outdated production capacity that was signed with the provincial government. The relevant units took into consideration the overall situation, overcome difficulties, and properly placed the transfer staff. As planned, 12 blast furnaces and 2 electric furnaces were shut down, and the iron and steel production capacity was reduced by 4.6 million tons. Steel production capacity 400,000 tons. All major production units have completed the "Eleventh Five-Year Plan" energy saving and emission reduction targets signed with the government. Shansteel Group was named the first "Low-carbon Shandong Model Unit" and listed as the first batch of "resource-saving environment-friendly enterprise creation pilot enterprises".

Pay close attention to product development and innovation. In the development of new products, Shansteel Group has established a SBU efficient development team that is market-oriented, user-centered, and integrates production, sales, and research. We have developed a large number of new high value-added products such as steel for offshore platforms, high-strength structural steel, wear-resistant steel, steel for special pipelines, and steel for gears. In 2010, the proportion of products with higher sales efficiency reached 57.99%, and in 2011 it increased to 68.50%. Carry out brand excellence project, pay close attention to product physical quality and service quality, carry out product quality defect research, strengthen process technology supervision, reduce quality loss, and maintain corporate brand image.

Deepen the cost reduction and efficiency increase. Shansteel Group has established the concept of “disparity is potential and potential is efficiency”, humbly learns from advanced companies, identifies gaps, establishes confidence, formulates assessment methods, breaks down indicators at various levels, transmits pressure, implements responsibilities, and conducts in-depth benchmarking. We have achieved good results in reducing procurement costs, optimizing the charge structure, improving major technical and economic indicators, controlling various expenses and plugging management loopholes. We will give play to the role of various business centers and promote the cost reduction and efficiency increase through the synergistic advantages of group operations. In 2010, we achieved synergies of 1.37 billion yuan and reached 1.5 billion yuan in 2011. In the past three years, the economic efficiency has remained stable under the condition that the scale of production has not substantially expanded, and the increase in raw materials, such as the increase in raw material prices, has increased substantially over the years.

Strengthen professional management. In the past three years, Shansteel Group adhered to stable operation, continuously strengthened the management of financial assets, optimized the varieties and structure, and made new breakthroughs in overseas low-cost investment in 2011; it strengthened unified fund management, reduced capital occupation, and asset-liability ratio in 2011. reduce. Strengthen comprehensive budget management, comprehensive risk management, fixed asset investment management, salary performance appraisal, total salary budget management, legal affairs management, and audit supervision, and explore the implementation of a series of reforms such as the personnel system, salary system, and management procedures.

Pay close attention to marketing. In the past three years, Shansteel Group has taken the full implementation of the marketing management objective control system as the main line of marketing work, increased the target market share, tons of material sales prices, the province's resources, direct sales ratio and other indicators, reduce tons of material sales costs, improve product sales income. Integrate products and export business with high degree of coincidence in the iron and steel industry, and unify sales strategy, market distribution, resource allocation and service standards, achieve customer resource sharing, coincide the price of product orders, and implement unified sales for products with strong individualization. Guide price, regional market influence. Efforts should be made to lead the province's market, seize the high-end market outside the province, and expand the international market. Innovate the marketing concept, explore the implementation of the “product + service” marketing model, establish strategic cooperation relationships with downstream manufacturing companies, explore the business of deep processing and distribution of steel products, and vigorously develop direct supply customers. The ratio of direct sales to direct sales increased from 53.74% in 2010 to 55.50% in 2011.

Constantly optimize and upgrade. In the past three years, Shanshan Iron and Steel Group has successively built a number of large-scale technical equipment with international advanced level, supporting the transformation of medium plate, medium plate, hot rolled sheet, cold rolled sheet, galvanized sheet, and color coated sheet production line. The four hot-rolled product lines and cold-rolled product lines of steel, strip, rod, and eutectic steel are sold to more than 40 countries and regions in the world. The equipment level has achieved large-scale, intelligent, modernization, and has been further improved. The "Diamond Diamond" advanced by high-end technology and high-end products has brought about a rapid increase in the competitive strength, and the company's development has shown a solid stamina.

"Clothes" into one heart "Gathers" a game of chess

Shanshan Iron & Steel Group is an ultra-large iron and steel enterprise group formed from the transfer of state-owned property rights and organizational structure of enterprises and units affiliated to Jinan Iron & Steel, Laiwu Steel and Shandong Metallurgical Industry Corporation in March 2008. It is currently the largest province in Shandong Province. Is a state-owned enterprise. As of the end of 2010, there were 89,000 employees and total assets of 127.6 billion yuan.

Since the establishment of the Shansteel Group for more than three years, the party committee of Shanshan Iron and Steel has faced many difficulties in the process of corporate restructuring and the grim situation in its production and operation. It has innovated the work of party building and fully utilized the Party Committee in promoting the healthy development of the company and promoting the continuous deepening of the joint reorganization. The political core role. A new way of “centering around and serving the overall situation” has emerged.

Efforts will be made to strengthen political protection and ensure the correct direction. The party’s spirit of the 17th National Congress of the Communist Party of China and the scientific concept of development guided the continuous development of the importance and necessity of the formation of the group, insisted on the use of the major decisions of the provincial party committee and the provincial government to unify the ideological understanding of cadres and workers; actively participated in decision-making on major issues of the enterprise, and the party and government The team always keeps the same goal, scientific decision-making, decision-making, and continuous improvement in the level of decision-making according to law provide an important guarantee for speeding up the transfer of structure and promoting scientific development.

Efforts will be made to strengthen ideological security and create a good atmosphere. In accordance with the idea of ​​“grasping with party building and promoting escort for development”, the party’s work has been organically integrated with the enterprise’s central tasks, armed with the scientific theory, consolidated the consensus with correctness, and persisted in carrying out publicity and education on the situation and tasks to guide the cadres and workers. To understand the situation, unify ideas, strengthen confidence, and overcome difficulties, has provided a powerful ideological motivation for accomplishing the central task.

Efforts will be made to strengthen organizational guarantees and keep the advanced nature. Continuously strengthen self-construction, actively promote the integration of party building work with the spirit of reform and innovation, and form a work structure in which the party's construction work is unified and deployed, unified actions, and unified assessment. The political core role of party committees, the role of grassroots party organizations fighting bastions, and the exemplary role of party members and leading cadres The role of vanguard and party members has been brought into full play.

Efforts will be made to strengthen team support, enhance combat effectiveness and creativity. Adhere to ideological construction as a guide, capacity building as a fundamental, decision science as a goal, and institution building as a guarantee. Take a sound scientific assessment system as a starting point, and constantly improve the leadership and management mechanisms for cadre work, and formulate and implement a number of important The management system has adjusted and enriched the group headquarters and some unit leadership groups; adhered to the party's principle of managing talents, closely focused on the development strategy of Shansteel, and effectively grasped the construction of management and management personnel, professional and technical personnel, and senior skilled personnel.

Efforts will be made to strengthen the protection of the style of work and boost the fight against corruption and build a clean government. We continued to carry out multi-modal demonstration education, warning education, and the Independent Administrative Party, further intensified the supervision of Party members and cadres; the disciplinary inspection and supervision work system and system gradually improved, the capacity of disciplinary inspection and supervision cadres further improved, and the implementation of the work style of the Party's work style and combating corruption Strict implementation of the "triple and large" collective decision-making system, the construction of anti-corruption into the evaluation of all units, actively and steadily investigate and deal with cases of violating discipline and law, and solidly carry out the "little treasury" special rectification work, in-depth promotion of efficiency monitoring.

Efforts will be made to strengthen cultural protection and enhance cultural leadership. Innovation has formed a "win-win culture" system based on "co-creation and win-win" as its core values, bringing together the ideological consensus through the integration of corporate culture, promoting reorganization, integration and transformation of development methods, and forming a united will and style within. It has enhanced the determination and confidence to cope with difficult challenges and promote development, stimulated the creation of vitality, and has been widely recognized and highly valued by the community. It has established a good overall image of Shansteel. In 2011, it was awarded the title of “Top Ten Brands” and “Top Ten Units” for corporate culture in Shandong Province.

Efforts should be made to strengthen harmonious protection and share the fruits of civilization. In close connection with the integration of development tasks of the Shansteel Group, it has established the goal of building a harmonious mountain steel with “harmony of the team, harmoniousness of the upper and lower people, harmony of employees, harmony between the interior and exterior”; adherence to the education of the socialist core value system, in-depth development of spiritual civilization, and wholeheartedly relying on Staff-run enterprises, actively solve problems for employees, build harmonious labor relations, actively participate in social public welfare undertakings, fulfill social responsibility of large state-owned enterprises, carry out moral model selection activities, actively perform letters and visits, and maintain stability, ensuring production and management and the workforce. stable.

Breaking the old fence and drawing a new blueprint

Since the establishment of Shansteel Group in 2008, it has invested more than RMB 6 billion and implemented 284 circular economic projects. The overall appearance of the company has fundamentally changed. Since the establishment of Shansteel Group, the overall energy consumption per ton of steel has been decreasing year by year, which is lower than the national industrial policy and the comprehensive energy consumption limit of tons of steel in Shandong Province. According to the comprehensive energy consumption targets of 80 companies announced by the 2010 Steel Association Energy Statistics Express, the total energy consumption level of Shansteel Group is in the top 20 in the industry. All this is the result of the accelerated transformation of the economic development approach of the Shansteel Group. In 2011, the pilot province of steel industry restructuring was settled in Shandong, which brought significant opportunities for the development of the “Twelfth Five-Year Plan” of the Shansteel Group. It is of great significance to promoting the transformation of the structure and scientific development of the Shansteel Group. This will inevitably require Shansteel Group to further explore the construction of a new model of the green steel economy and speed up the transformation of the economic development mode.

In response, Zou Zhongkai, chairman of Shanshan Iron and Steel Group, said with full confidence in the 2012 annual work meeting: “In the 12th Five-Year Plan period, Shansteel Group must understand the opportunities and its own from the perspective of economic transformation, long-term perspective, and development. Advantages and potentials will win the initiative and take the initiative in the transitional development, making Shansteel Group stand out!"

During the “Twelfth Five-Year Plan” period, Shansteel Group fully implemented the development strategy of “Highlighting the Coastline, Optimizing the Inland Areas, Emphasizing Both Quality and Scale”, adhering to the “six changes and six constructions” and making efforts to advance the layout structure, industrial structure, product structure, and equipment. Structure, organizational structure adjustment, layout and construction of world-class steel enterprises.

-- Thoroughly changing the extensive business model that emphasizes production expansion, and focusing on building an intensive management approach that emphasizes the improvement of the quality and efficiency of the variety, both quality and scale.

——To radically change the situation in which inland enterprises’ resources and environmental constraints are increasingly prominent, and strive to build a layout structure that highlights coastal areas, optimizes inland areas, and responds to land and sea.

——To radically change the product structure focusing on medium and low-end products, features that are not prominent, and weak market adaptability, and strive to build user demand-oriented, prioritize regional markets as the priority, high-end end-to-end integration, professional division of labor, and differences. Development of the product system and corresponding service system.

——To radically change the non-steel industry with various types, scattered layouts, lack of vitality, and lack of advantages, and strive to build an industry structure that focuses primarily on one industry, appropriately diverse, and coordinated development of various industries.

——To radically change the situation in which technological innovation is not strong and long-term passive follow-up. Efforts have been made to build a technological innovation system that can support product research and development, adapt to energy-saving emission reduction requirements, and drive the scientific development of enterprises.

——To radically change the situation of closed development and limited resources, and strive to build an international production and operation system that adapts to the size and strength of the group companies, has a flexible mechanism, and is highly efficient in operation, and can implement element integration and resource allocation on a global scale.

Respect objective laws and achieve practical results. Shansteel Group adhered to the "eight-step move" to revitalize the scientific development path of the "12th Five-Year Plan" steel industry, and made the work real. The first is to promote joint reorganization - under the guidance of the government, to fully promote the reorganization of relevant steel companies in the province. The second is to adjust and optimize the layout of the structure - the implementation of inland production capacity to the coastal transfer strategy, the formation of "a coastal steel boutique base, a few specialized production plant area," the industrial layout, the proportion of coastal production capacity reached more than 40%. The third is to adjust and optimize the structure of process equipment. In combination with the construction of coastal steel boutique bases, the backward production capacity is eliminated step by step. The technological equipment of the coastal plant area has reached the international first-class level, and the other plant areas have reached the domestic advanced level, achieving large-scale, high-efficiency, and intelligent equipment. Fourth, adjust and optimize the product structure—consolidate the brand advantages of special products such as plate, H-beam and Youte Steel, and vigorously develop marine steel, high-end equipment manufacturing steel, high-end construction steel, and emerging industrial steel, giving priority to satisfaction. The regional market, high-end and reasonable ratio, and product structure that meets the needs of the steel industry for variety and performance. Fifth, develop a recycling economy and a low-carbon economy—integrate and innovate low-carbon technologies at home and abroad in the iron and steel industry, accelerate the conversion and application of low-carbon scientific and technological achievements, focus on the three levels of business, industry, and society, and build a new low-carbon economy and circular economy as the core A generation of iron and steel manufacturing process system, built a circular economy demonstration area and a carbon emission assessment demonstration base, to achieve the goal of “low investment, high output, low pollution, high efficiency, and sustainability”. Sixthly, it is to extend the upstream and downstream industry chains—increase access to resources at home and abroad, establish a resource security system that matches the scale of the company’s development, and rationalize the distribution of steel processing and distribution centers and logistics centers, and accelerate the transition from materials manufacturers to manufacturing + services. Seventh, we will vigorously promote technological innovation—high-level construction of a technology research and development system, focus on the pilot requirements for structural adjustment of the steel industry, and achieve breakthroughs in key areas, key projects, and key technologies to support Shansteel's entry into innovative companies. The eighth is to explore the promotion of internationalized operations—implementing the “going out” strategy, strengthening international cooperation, making full use of overseas talents, technologies, funds, information, raw materials, marketing networks, and other advantageous resources to build an operation management system that is suitable for global resource allocation.

Currently, the development of a strategic move and decision-making arrangement for the “12th Five-Year Plan” of the development of the “12th Five-Year Plan” is progressing steadily. The image of building a world-class steel company is becoming clearer and clearer. Blueprints are being painted in the hands of "Shangang"...