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Jigang's transformation under the supply side structural reform

Time: 2019-07-26 08:51:56 Source: Author:

On July 8, two years ago, Shandong Iron and Steel Group Jigang Group Co., Ltd., with a glorious history of 60 years, shut down all steel production lines and sought green transformation, becoming the first 10 million ton urban steel enterprise in China to fully withdraw from steel production capacity.

Today, green and low-carbon sunrise industries, such as environmental protection materials, park economy, modern logistics, stand up as a new backbone of Jigang. From "relying on steel for food" to "abandoning steel for development", Jinan Iron and Steel Group stepped out of the pain of transformation, ushered in a transformation, and interpreted the transformation of China's development philosophy and development mode with vivid "second entrepreneurship" practice.

"Short term profits are" small interests ", and long-term development is the overall situation"

Standing in the office building across the road from the plant area of Jigang, the 3200 blast furnace that Li Binglai had stayed with day and night seemed to be within reach. Two years ago, it was he who braved tears to issue the shutdown order, ending the historic mission of this landmark blast furnace and opening the prelude to the comprehensive shutdown of the steel production line of Jigang.

Jigang, founded in 1958, is one of the first batch of local backbone iron and steel enterprises in New China and the industrial pillar enterprises in Jinan. At its peak, the steel production capacity exceeded 12 million tons, ranking among the top ten steel enterprises in China; She has supported countless families in Jinan and is in harmony with the city. However, under the background of the country's promotion of "capacity reduction and structure adjustment" in the steel industry and Jinan's efforts to control air pollution, Jinan Iron and Steel Group has come to a crossroads.

"Jigang is located in the 'spring city' of Jinan, with high logistics costs, relatively low benefits and great environmental pressure." Bo Tao, chairman of Jigang, said that at the end of 2016, the strategic plan of "shutting down the main business and transforming development" of Jigang was officially approved by the Shandong Provincial Government. It is proposed in the plan that the steel production line of Jigang will be shut down safely before the end of 2017.

There is no precedent in China for a 10 million ton steel enterprise to shut down its main business as a whole. The time is short and the task is heavy, but under the full plan, on July 8, 2017, the last batch of molten iron was produced in the ironmaking plant of Jigang, and the steel production line was officially closed.

A few lines of words written on the steel plate record the attachment of "iron men": "Jinan Steel's four meter three production line, the last steel plate. Love you, Jinan Steel."

A few months after Jinan Iron and Steel closed its main steel business, the steel price came out of the trough and steel enterprises made a lot of profits. When a reporter asked Bo Tao whether he thought it was "early closing", he replied that short-term profits were "small interests" and long-term development was the overall situation.

"Create a new Jigang in three years"

Baoshan is said to be the place where Bao Shuya sleeps forever.

This once bare bluestone mountain is now covered with trees. In the early 1990s, Jigang, at the foot of Baoshan, mobilized tens of thousands of workers to carry soil up the mountain, plant trees by blasting pits, and irrigate water, making Baoshan look beautiful.

Similar to rebuilding Baoshan, an operation to rebuild Jigang is underway.

Bo Tao said that capacity reduction is not enterprise reduction. With the steel industry gone, Jigang will continue to move forward. "Give us three years to rebuild a 'new Jigang'."

Revitalize the stock industries, develop quick profit projects, and build future projects in a "three way way". Jinan Iron and Steel Co., Ltd. is constantly "hematopoietic" to restore vitality.

After leaving the ironmaking plant, Li Binglai led more than 60 technical backbones to transform and start production services. "Relying on technical advantages, we provide technical support and operation trusteeship for other enterprises' iron making, coking, steel rolling and other businesses." Last year, they contributed more than 10 million yuan of profits to Jigang.

At Jigang Urban Mineral Residue Transportation Branch, 100 residue trucks were arranged in order. This is a quick profit project built by Jinan Iron and Steel Group for staff placement. It will be profitable in the next month of operation. The purchase of 100 cleaning trucks in Phase II has been included in the plan.

Relying on the old factory, Jinan Iron and Steel Group has built a Shunfeng distribution center, which can deliver more than 400000 express pieces every day; The multimodal container train runs three times a week; 52 enterprises were incubated in the first phase of "Creative Valley", which was rated as Shandong Provincial Entrepreneurship Incubation Base; 16 surviving enterprises recovered, and all of them made profits last year

Successive industries have gradually become the climate, gradually filling the "collapse pit" of output value. In 2018, Jigang realized a sales revenue of 14.7 billion yuan, close to 50% before the closure of the main business; The total assessment profit was 219 million yuan, and the per capita annual income of employees reached the highest level in history.

"Comprehensive transformation, the iron man becomes a goddess"

Recycle concrete blocks from construction waste for reuse, and use the rest to produce special-shaped building materials through 3D printing, so that the construction waste can be 100% digested - this project named "urban mine" by Jinan Iron and Steel Group Co., Ltd. integrates the construction waste cleaning and recycling, automobile disassembly, scrap processing, concrete production and other projects of Jinan Iron and Steel Group Co., Ltd., and the framework has been completed.

After solving the problem of "eating", Jinan Iron and Steel Group will anchor the new driving force, integrate the industry, form a system, complete the chain, and cultivate the industrial characteristics and scale benefits by "gathering the fingers to form a fist".

Utilize existing railway marshalling yards, idle factory buildings and other logistics resources to develop urban service logistics business integrating multimodal transport, urban distribution and e-commerce; Relying on the industrial park, focusing on new materials, high-end equipment intelligent manufacturing, scientific and technological service innovation to cultivate new industries... These projects are all energy-saving and environment-friendly new industries without exception.

"Jigang used to be an emission oriented enterprise, but now it has become an absorption oriented enterprise." Bo Tao said that "New Jigang" will be more high-end, greener, more distinctive and more dynamic. If the former Jigang was an "iron man" with muscles, the future Jigang will become a more popular "goddess".

At the party congress of Jinan Iron and Steel Group at the end of 2018, it was proposed to take 2-3 years to restore the business scale to the level before production suspension; In five years, the business scale doubled to 60 billion yuan compared with that before production suspension.

"If you attach the end of the road, you can travel thousands of miles." Bo Tao said that the transformation of Jigang has caught up with a good time. The country's deepening of supply side structural reform and the construction of Shandong Province's new and old kinetic energy conversion comprehensive pilot area have created a rare historical opportunity and policy support for Jigang, which is pregnant with the rebirth of Jigang.

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