Steel international capacity cooperation ushered in a period of rapid development
Sep. 11, 2018
“Since 2013, China's iron and steel enterprises have actively implemented the “One Belt, One Road” initiative and went global to carry out international capacity cooperation. Currently, with the deepening of the construction of the “Belt and Road” and the rise of international trade protectionism, the international cooperation in steel production capacity is positive. We are welcoming a period of rapid development.” On the occasion of the 5th anniversary of the “Belt and Road Initiative”, at the end of August, Chi Jingdong, vice president of China Iron and Steel Association and chairman of the China Iron and Steel Industry International Capacity Cooperation Enterprise Alliance, accepted the “China Metallurgy”. The reporter’s exclusive interview with the reporter opened the Ming Dynasty.
Actively implement the “Belt and Road Initiative”
Steel international capacity cooperation has achieved remarkable results
Talking about China's steel industry, Chi Jingdong is full of pride. He said that since the reform and opening up, China's steel industry has made tremendous development achievements. Not only has the crude steel output increased rapidly, but it has solved the contradiction of short supply, and the overall technical level has been continuously improved, forming the world's most complete modern steel industry system. Steel engineering construction, equipment manufacturing, process technology, production organization, product research and development, etc. have been at the world's leading level. The accumulation of superior production capacity and strong industrial supporting capacity have laid a solid foundation for China's steel industry to carry out international and international capacity cooperation.
According to Chi Jingdong, in the past five years, China's steel metallurgical equipment technology exports have also made great progress, gradually exporting from single equipment and components, to the export of complete sets of equipment and general contracting, and the international competitiveness has been continuously improved. MCC and Sinosteel take the process design as the leader, rely on the core technology and product manufacturing, and use the project management and construction as the means to compete with the traditional European and American metallurgical equipment and equipment companies, and win the EPC (general contracting) model. A large number of international steel complete sets of projects with important influence have formed a certain influence in the international arena. The Formosa Plastics Vietnam Hejing 7 million tons steel plant project, which was contracted by China Metallurgical Group, was successfully put into operation, realizing the overall design and system output of the 10-million-ton green-green steel project; Malaysia Kuantan United Steel (Malaysia) 3.5 million tons comprehensive steel plant It was completed on schedule and became a typical example of China's capital, Chinese technology, and China's management to go global to carry out international capacity cooperation. China Metallurgical South successfully obtained the general contract of continuous hot-dip galvanizing unit of Spain ACS, and realized the export of China's cold-rolled technology and equipment to European developed countries. Zero breakthrough.
Seize the opportunity of the “Belt and Road”
Promote international steel production capacity cooperation to develop in depth
"Going out to carry out international capacity cooperation is an important measure for China's steel industry to actively implement the 'One Belt, One Road' initiative and promote the construction of the 'Belt and Road'. It is an inevitable requirement for its own transformation and upgrading, high-quality development, and it is also the response to the current 'trade war'. And an effective way to participate in international market competition." Chi Jingdong stressed.
China's steel industry has a complete steel industry system in the world, and it is one of the most advantageous industries in China. Due to the strong domestic market demand, the enthusiasm of China's steel industry to go out is not high, and the degree of internationalization of steel companies is still at a low level. As China's steel industry's superior production capacity accumulates and there is a surplus, especially with the rise of international trade protectionism, going out to carry out international capacity cooperation has become the active pursuit and realistic choice of more and more steel companies. Therefore, Chi Jingdong believes that steel investment is in a period of rapid development.
Of course, he also frankly that China's steel companies have encountered many difficulties and problems in the process of international capacity cooperation. For example, systematic research, planning, and coordination at the national and industry levels cannot meet the needs; enterprises go out of their way to fight alone and affect each other, affecting the image of China and China's steel; overseas investment in steel mill products is sold back to the domestic market, exacerbating competition in the domestic market. Foreign construction of steel processing plants also has policy barriers, high tariffs for billet reduction, lack of competitiveness with similar domestic products; project financing problems have not been effectively resolved, especially private enterprises are more difficult to finance, the efficiency of financing approval needs to be improved, loan interest The overall level is relatively high; the countries along the “Belt and Road” have great religious beliefs and cultural differences, political instability, sectarian struggles and other factors affecting the progress of the project. The taxation and labor issues in the operational stage are prominent, and the issue of overseas investment protection is highlighted.
According to Chi Jingdong, in order to coordinate and standardize the behavior of steel companies going global, and promote the healthy and orderly development of international capacity cooperation in the steel industry, the China Iron and Steel Industry Association, in conjunction with the National Development and Reform Commission, initiated the establishment of the joint steel and related enterprises and institutions in March 2017. China's steel industry international capacity cooperation enterprise alliance. In this way, we can rely on the alliance, do a good job in the top-level design of the industry's foreign investment cooperation, build a one-stop policy consultation, support and information service platform, coordinate and coordinate the company's go-go behavior, and avoid vicious competition. Entrusted by the relevant state departments, the Alliance is conducting research on the basic ideas, principles and objectives, specific modes and paths of steel international capacity cooperation, and is expected to be completed within the year.
Chi Jingdong pointed out that international capacity cooperation is an important starting point for the globalization and internationalization of Chinese steel companies, and an important measure to achieve both large and strong goals. When talking about the main objectives of international steel production capacity cooperation, he believes that there are three main ones: First, the internationalization level of the steel industry has been greatly improved, reaching the level of the major steel-producing developed economies, and the leading enterprises have reached the level of the world's outstanding steel enterprises; It is the status of steel international division of labor and the reputation of China's steel is steadily increasing; third, China's steel plays a greater role in world steel governance.