Reborn Resource Tycoon

Chapter 882 A New Growth Model

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The opinions of these two factions are basically the same in the Liao Province Iron and Steel Plant, and no one can convince anyone. Although Fang Sheng also has a job in the Liao Province Iron and Steel Plant, for now, his main energy has been put on Qin Xi. The provincial iron and steel group company, so they were noncommittal about the views of the two factions, so this dispute was submitted to Fang Mingyuan all the way.

It is indeed a question whether to continue to expand the production capacity of the iron and steel plant in Liao Province, or to stabilize and lay a solid foundation first.The opinions of both parties cannot be wrong, it is just that a company has different emphases in different periods.Fang Mingyuan actually had a hard time making a decision in his heart.From a market point of view, since there is no backlog of products in the Liao Province Iron and Steel Plant, the products of the Liao Province Iron and Steel Plant are so welcome in the domestic and international markets, and the continued expansion of production capacity is undoubtedly the result of many people's unhesitating choice.

But the other school is not wrong. Over the years, Liao Province Iron and Steel Plant has almost always been in the process of rapid expansion of production capacity. After the first phase of the project is completed, the second phase of the project will be launched immediately. After the second phase of the project, the third phase of the project will start again. Start construction, and the normal operation of a steel plant is related to all aspects, such as raw material procurement, production, sales, personnel training, technology research and development... Only with comprehensive and balanced development is the best state.Slowing down the pace of development for a short period of time does not mean giving up progress, but just accumulating strength and waiting for the next opportunity to explode more violently!

But do we still need to wait for the next opportunity?Fang Mingyuan knew that in the next few years.It is the years when Huaxia Steel's production capacity has continued to grow. In a few years, Huaxia's annual steel production will reach a terrifying [-] million tons or more!Although the country has been working hard to control and reduce the redundant construction of low-level steel plants as much as possible to prevent structural excess.But in reality, it has had little effect.

In the future, China will certainly be the largest country in steel production, but also the largest importer of steel products.The main reason is that the structural imbalance of domestic steel products is prominent.On the one hand, the production capacity of ordinary steel products such as rebar, small bar, and wire rod, which are the main products of many domestic iron and steel enterprises, is seriously overcapacitated.The profit margin is low, and there is almost no export market. Even if it can be exported, there is no profit. This is still under China's low environmental protection and low labor requirements. Fang Mingyuan can only say that he does not want to earn foreign exchange through this kind of export.On the other hand, some products with high added value and high technical difficulty, such as stainless steel plates and cold-rolled and hot-rolled thin plates, cannot be produced in China.Some are able to produce, but the production capacity of the enterprise is seriously insufficient, so that the supply of products is in short supply, and the country needs to import a large amount every year.

As for the Iron and Steel Plant in Liao Province, it had a high starting point from the very beginning.Almost all of the products produced are high value-added and highly technically difficult varieties, most of which were not able to be produced in China at that time, or were able to be produced but had insufficient production capacity, and nearly half of the output was produced.From the very beginning, we aimed at overseas markets, so we were able to obtain such good benefits.During this cycle of best-selling steel products, stop expanding production capacity.It is indeed a pity.

Moreover, Fang Mingyuan knows better than anyone in China that in the next few years, the international steel industry will undergo a major reshuffle. In order to control costs and increase profit margins, whether it is Europe, the United States, or Japan, these Iron and steel production enterprises in developed countries have launched acquisitions and strong alliances, and larger steel group companies have emerged one after another.

For example, in his previous life, Japan's Nippon Steel and Sumitomo Metal Industries were negotiating to merge into a new company with an annual crude steel output of more than 5000 million tons, accounting for about 50.00% of Japan's steel output.

"How about expanding the production scale through acquisition?" A thought flashed through Fang Mingyuan's mind, "Just like what Mittal Steel did!"

During this period, Mittal Steel Company was not known at all, because the name Mittal Steel Company was officially adopted after the merger of the famous lnm Holding Group and Ispart Steel Group in the following year.Two years later, Mittal Steel and Arcelor Steel Group, the largest steel company in Europe, merged to form the world's largest steel company, ArcelorMittal Steel Group!Its annual steel output has reached 2000 million tons, which is basically equivalent to the annual output of Japan, the world's second largest steel producer, and it has become a giant in the domestic steel industry!
The reason why Mittal Steel Corporation has been able to reach the top of such a glorious industry is through repeated international mergers and acquisitions. Its mergers and acquisitions companies are all over the world!
Compared with Mittal Iron and Steel Company, Fangjia now also has similar conditions. It has a strong management team trained through the construction and operation of the steel plant in Liao Province, has its own research and development center, and has sufficient iron ore. There is sufficient supply of coal, sufficient overseas transportation capacity, and the ability to develop sales in overseas markets. More importantly, the Fang family still has sufficient funds!And all of these, in the future, will become the envy of many domestic steel companies!
Perhaps in the international steel industry, the Fang family can only be regarded as a little-known figure, but in China, Fang Mingyuan believes that he has enough influence to acquire those local steel companies with poor returns!The predicament of the iron and steel industry in West Qin Province is not a special phenomenon in China!

Of course, in the international market, the Fang family will also try to stretch out their minions. If Fang Mingyuan remembers correctly, the next few years will be a period of great development for China's steel industry, but it will also be a period of great development for the world's steel industry. A period of general distress.The steel industry in many countries is in trouble due to various reasons. This is also an important reason why those steel industry giants frequently reshuffle. Everyone must control costs as much as possible and expand their market share. Those small fish and shrimp , naturally there is only the fate of being annexed!
Having figured out his ideas, Fang Mingyuan worked for three full days, and with the help of his assistant team, he finally came up with a complete set of development plans!

Today, at the junction of Liaoyuan City and Wuye County, the original farmland has been replaced by a modern large-scale steel factory. Railways and roads cross the entire factory area.Outside the factory area, a bustling town has formed around the factory area.Looking at the many small buildings and the many restaurants and shops along the street, it is hard to believe that eight years ago, this place was still a piece of farmland, and the nearest village had only more than 2000 people.There is only one dilapidated road that will be muddy when it rains and snows, connecting Liaoyuan and Wuye County.

Today's Liaoyuan Iron and Steel Plant has become an out-and-out taxpayer in Liaoyuan City, and it is also the mainstay of the economy. Thanks to the Liao Provincial Iron and Steel Plant, those municipal state-owned enterprises in Liaoyuan City have either rejuvenated , or although it went bankrupt, the workers did not have to worry about having nowhere to go.Whether it is going to Liaoyuan City or Wuye County, the Liao Province Iron and Steel Factory has very convenient transportation, so even workers who live in the city can take the shuttle bus provided by the factory to and from get off work every day.

As for those workers who do not own houses in Liaoyuan City, many of them settled in the town where the factory is located.Almost half of the community here is the dormitory of the steel factory in Liao Province. The workers in the steel factory only need to pay a small monthly rent, and they can have their own home here according to the family's situation.As long as he is not dismissed by the factory, the house can be rented forever.Moreover, the factory clearly stipulates that all workers who work in the factory until they retire can have the right to use the house until both husband and wife die, but during this period, other than immediate family members, they are not allowed to use it. No rental is allowed.

And for those workers who are willing to buy a house to live in the urban area where the factory is located, the factory will give a certain amount of financial subsidies.More importantly, with the average income of iron and steel factory workers in Liao Province, the house price here is really not a heavy burden, and the bank loan is also very happy.

Now in this emerging town, hospitals, primary and secondary schools, banks, post offices, and supermarkets are all needed for daily life. The employees and family members of the iron and steel plant in Liao Province, no matter where their household registration is, can enjoy the same household registration as the local household registration. treatment.Although these expenses have increased the financial burden of the iron and steel plant, it has made the workforce of the iron and steel plant in Liao Province very stable and full of cohesion.

When Deng Zhong and Fang Mingyuan walked the streets here together, Deng Zhong felt as if he was walking in a non-core area of ​​the provincial capital.

Because he successfully "persuaded" Fang's family to invest 30 billion yuan in the construction of the Liao Province Iron and Steel Plant in Liao Province, Deng Zhong, the then deputy secretary and vice governor, successfully overcame an important hurdle in his official career and got his wish in Liao Province. In 2000, he became the Governor of Liao Province.And at the end of 1000, he successfully became the leader of Liaoning Province.Among them, the brilliant performance of Liao Province Iron and Steel Works is also indispensable.A steel company with an annual output of [-] million tons is one of the few in the whole country.More importantly, the Iron and Steel Plant in Liao Province is not just a single branch, it has also vigorously promoted the development of upstream and downstream industries, and has contributed a non-negligible role to the economic development of Liao Province.

But now, Liao Province Iron and Steel Plant can be said to have developed to the point of a bottleneck, how can Deng Zhong not care?

Therefore, when he learned that Fang Mingyuan was going to come to the Liao Province Iron and Steel Plant for field inspection, Deng Zhong did not hesitate to let go of his position as a leader and personally accompanied Fang Mingyuan to the Liao Province Iron and Steel Plant. (To be continued..)

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