Steel Tycoon Reborn

Chapter 1019: Xiling Iron Mine

Lord Snow Eagle, Legend of the Dragon King, Super Soldier King, Cultivation of the Rain and Clouds, Supreme Martial Arts, King of Eternal Night, My Neighbor is a Banshee, Legend of Fairy Wood

After the Spring Festival, the East Ring Expressway, Nanwan Lake Expo Park, Nanwan Lake Convention and Exhibition Center, Nanwan Lake University Town Huai Gong University, Huaihai University, led by Ronshine Construction, Ronshine Real Estate and Huaihai State-owned University Town Holdings A number of development and construction projects, including the new campus of Huaihai Normal University, the first phase of Nanwan Lake Software Industrial Park, and the Youth Apartment in University Town, have started construction. The “three horizontal and three vertical” infrastructure projects in the Nanwan Lake New Area, such as road traffic, power supply and communication, water supply and drainage infrastructure projects, have been put into construction one after another years ago.

This marks the beginning of the construction of the Nanwan Lake New District.

The international industrial parks and power equipment industrial parks originally affiliated to Qinjiang District are also all placed under the Nanwan Lake Yanjiang Industrial Zone. The province and Xucheng also actively promote the Nanwan Lake Yanjiang Industrial Park, University Town Science Park and Nanwan Lake. Together with the new district, apply for a national-level new district.

Major industrial projects such as the Huaihai Electric Heavy Industry Manufacturing Base led by Huaihai State-owned Assets and the 50,000-car assembly line of Dongshi Group have also started construction after the Spring Festival.

In the first half of the year, Provincial Iron and Steel Group also started a comprehensive restructuring work, and Ronshine Group also made no secret of its desire to obtain a controlling stake in Provincial Iron and Steel, and to integrate Provincial Iron and Steel with Ronshine’s iron and steel assets to establish a company that is truly capable of following It is a large-scale iron and steel complex in which large-scale steel enterprises such as Meishan Iron and Steel compete domestically.

As a wholly state-owned backbone central enterprise, Ronshine Group will not touch sensitive issues even if it thinks of acquiring the provincial steel group in its entirety.

Hu Xi made concessions in the competition for the dominance of the construction of Nanwan Lake, not to mention that Cui Weiping, Chen Baoqi, Dai Lesheng and others have the decision-making power at the provincial standing committee meeting. Supporting attitude, Xu Pei can’t be too aggressive.

How to restructure the provincial steel, the question is still left to the provincial state-owned assets office to negotiate with the provincial steel and Rongxin Group.

Shen Huai is no longer in charge of the provincial state-owned assets office’s enterprise department, property rights department and other departments, and focuses his energy on Huaihai state-owned assets. Due to the comprehensive restructuring of the provincial iron and steel group, it involves the sensitive issue of competition with Meishan Iron and Steel. It should be avoided, but in fact it cannot be avoided.

Ronshine Group mainly wants to acquire the steelmaking assets of the Provincial Steel Group, while assets including the Xiling Iron Mine are expected to be accepted by Huaihai State-owned Assets.

The domestic steel market and steelmaking capacity have increased significantly, which naturally stimulated the demand for iron ore.

Xiling Iron Mine, with an annual output of 1.6 million tons of concentrate and a reserve of tens of millions of tons, is not a high-quality resource from this perspective.

However, the biggest problem of Xiling Iron Mine is backward equipment and overstaffed personnel; this has a great relationship with the development history of Provincial Steel, and it is regarded as a historical burden.

Although it has been streamlined many times, the Xiling Iron Mine with an annual output of 1.6 million tons still has more than 20,000 employees in 2000. If it weren’t for the Xiling Iron Mine, the annual profit of the Provincial Steel Group would be even higher. An increase of two or three billion.

Xiling Iron Mine has limited reserves and limited production capacity. After the completion of Xinjin Iron and Steel, Provincial Iron and Steel will take in an additional 4 million tons of high-quality iron ore from overseas every year. To further expand production in the future, it will only be in Xinjin Port. The construction of a larger-scale second-phase steel-making project will make the Xiling Iron Mine a chicken rib for Rongxin.

It is also because of the drag of Xiling Iron Mine that the profitability of the Provincial Steel Group has declined in recent years. It is far from comparable to the gold-absorbing machines such as Meishan Iron and Steel, and its halo is not as dazzling as the provincial state-owned capital groups such as Huaimei and Huaihai Financial Investment. Therefore, Provincial Steel has become a tasteless rib in the province. In addition to the operations of Rongxin and Hu Shi, the province also tends to support the comprehensive restructuring of the Provincial Steel Group.

Throughout May, Shen Huai took Sun Fujing and ran two or three times to Xiling.

The rapid development of Xucheng in the past two years makes it hard to imagine that there is such a poor county as Xiling under Xucheng.

Xiling is located in the northeast of Xucheng and the southwest of Yuling, surrounded by mountains. In the early years, it was prosperous because of iron ore. There were also several small steel mills. Apart from that, there were no decent industrial enterprises. Tourism industry, but due to the continuous mining of iron ore and other minerals for 60 to 70 years, the vegetation is reduced, the mountains are exposed, and the environment is very poor.

Due to the financial subsidy of the city, the streets of Xiling County have been renovated.

If Xucheng wants to develop, the environment of Xiling needs to be renovated, and the environmental debt needs to be repaid, which has become a big burden for Xiling Iron Mine.

Ronshine regards Xiling Iron Mine as a chicken rib, and it is not difficult to understand if it is not included in the iron and steel industry system of Rongxin.

“Rongxin may consider Xiling as a chicken rib and want to throw it away, or it may be retreating to advance, but no matter what their intentions are, we will not hand over the initiative; Huaimei will also take over, how about it?” Shen Huai pulls Sun Fujing to stand on the mine, looking at the county town below the mountain, smoking a cigarette and talking about the future of Xiling Iron Mine.

In the past, Huaimei also had serious redundant staff. It is extremely difficult to streamline employees. As a state-owned enterprise, it has an inevitable social responsibility. In the past few years, Huaimei has doubled its coal mining production capacity and doubled its production capacity. On the other hand, more coal washing, coking and other related factories were built to divert the original employees, so that the per capita coal mining volume increased to the international average level. During this process, the replacement of mining equipment was completed, which enhanced profitability.

According to the development planning and environmental requirements of the province and Xucheng City, Xiling will not only be unable to expand production capacity in the future, but will also eliminate and shut down some small mines that have a great impact on the environment. Nine out of ten employees can be reborn.

It is said that Rongxin takes retreat as advance, and Sun Fujing believes that it is possible.

It is not a big problem that the mining equipment of Xiling Iron Mine is outdated and outdated. It is possible to increase investment in replacement of equipment. With the rise of iron ore prices in the future, there are still expectations for profitability. What is even more troublesome is the redundant staff.

If there are so many workers, if they can’t be retrenched, they must have something to do. If they can’t feed their lives in vain, they can’t update the mining equipment with a higher degree of automation. The production efficiency of Xiling Iron Mine will always fall below the level of the same industry. profit opportunity.

The restructuring plan led by Rongxin seems to want to take over the steelmaking assets of Provincial Steel, and leave the burden of Xiling Iron Mine to the province. If the province has no confidence in handling the problem of Xiling Iron Mine, it will If the mine is packaged with the steel-making assets of Provincial Steel, it must only accept Rongxin’s strict settlement plan for Xiling Iron Mine, and the province, city and Xiling County must endorse the responsibility for the riots that the settlement plan may cause.

There are no factories in Xiling, and nearly 20,000 workers in the mining area will be expelled at once, so the small county town will not be in trouble?

If there is no retirement, even if the price of iron ore has the prospect of a sharp rise in the future, Xiling Iron Mine will be a huge burden, burdened with too many employees, and the mining equipment is outdated and cannot be upgraded, and there is no prospect for development.

This looks like a dead end that is difficult to solve in the process of provincial steel restructuring.

Sun Fujing didn’t know how Shen Huai would take the initiative from Ronshine Group, and why Ronshine Group regarded it as a tasteless thing, and it would no longer be a problem in Shen Huai’s hands.

“Changqing Group is optimistic about the good growth prospects of the iron ore market in the future. It has acquired several iron ore companies overseas. Xiling can set up a labor service company to export surplus workers overseas,” Shen Huai saw in Sun Fujing’s eyes. Looking forward to it, he continued, “Huaimei will have to leave Huaixi sooner or later. It is better to leave early than late.”

Shen Huai did not intend to obstruct the comprehensive restructuring plan of provincial steel led by Rongxin. Even without Rongxin, Meigang still faces competition from several other major steel companies in China, and there are not many more Rongxins.

Ronshine wants to hold a controlling stake in Provincial Steel, but at present its vision is still on the expansion of steelmaking scale, so it also regards Xiling Iron Mine as a chicken rib – Shen Huai wants to eat Xiling Iron Mine as a chicken rib with relish.

Evergreen Group has acquired iron ore companies in Thailand since 1997. In recent years, it has set its sights on Australia and Africa, which are richer in iron ore resources.

Although Australia’s iron ore resources are more abundant, Shen Huai advocates that the Evergreen Group should be placed in Africa, especially East Africa. Australia has extremely strict restrictions on the import of labor services, and Africa is the paradise for Chinese enterprises to export labor services – and China’s high-quality and low-cost labor resources are the real gold mine for now.

Meigang is listed in London as a whole, and it is enough to use the 3 billion yuan of funds and some bank loans for the construction of the second phase of Xinpu Iron and Steel, and the annual profit of nearly 2 billion is not eager to pay dividends. Ability to enter the overseas iron ore market together with the Evergreen Group.

Although Huaixi City currently has more than 30 billion tons of proven coal reserves, mining is difficult or easy~www.readwn.com~ The cost is high and low. A total of about 120 million tons of annual mining will limit further growth.

The orderly exploitation of resources is to avoid the premature depletion of regional resources.

After several years of development, the annual coal mining volume in Huaixi City has exceeded 60 million tons, and Huai coal accounts for nearly half of it. Even if Huai Coal’s share in Huaixi’s coal mining industry does not decrease in the future, the actual development potential will be limited.

Huaimei has to develop further, and sooner or later it will go out from Huaixi.

Going to other provinces and overseas to mine coal and other mineral resources is a suitable path for Huai Coal to take advantage of its own advantages.

Therefore, this time the provincial steel restructuring, Xiling Iron Mine is a chicken rib, Shen Huai still hopes that Huai Coal will take over together with Meishan Iron and Steel and Changqing Group, in order to play a greater advantage; Huai Coal will develop into a comprehensive large-scale mining group in the future. Not just limited to coal.

In this way, regardless of whether Rongxin regards Xiling Iron Mine as a chicken rib, or has a plan of retreating, Shen Huai will not play any riddles with them, and will directly hire Huaimei, Meigang, and Changqing. The three companies in the group will inherit the Xiling Iron Mine. Even if there are still various problems in the Xiling Iron Mine, they can be resolved during the development process.

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