Steel Tycoon Reborn

Chapter 1020: Undue Resistance

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

In 2001, domestic iron ore was less than 200 yuan per ton.

The reserves of Xiling iron ore are limited, and there is no potential for a substantial increase in the mining volume in the future. Even due to environmental factors, the annual mining volume will be controlled at about 1.5 million tons.

Therefore, adding mining, crushing, beneficiation and other processes, and finally selling iron powder to steel companies, the total output value created by Xiling Iron Mine in a year is only about 300 million yuan.

As such an industry with limited development space and limited potential has to support 22,000 to 3,000 employees, the burden is heavy, one can imagine the burden.

As far as Rongxin is concerned, it is absolutely necessary to take over the Xiling Iron Mine, but they would rather spend hundreds of millions of funds to replace mining and mineral processing equipment, and also remove the seriously redundant workers.

Just to clear 20,000 workers in the Xiling mining area at one time is very difficult and daunting; at the same time, the clearing fee will not be too low.

In this comprehensive restructuring of Provincial Steel, Japanese-owned Fuji Steel also participated.

As far as Fuji Steel is concerned, it does not want to touch too sensitive social issues in China, so it will not take the heavy burden of Xiling Iron Mine.

After many negotiations, the restructuring plan was finally finalized in late June. Rongxin Group, Huaihai State-owned Assets, and Fuji Steel jointly initiated the establishment of Rongxin Iron and Steel United Co., Ltd., accepting provincial steel listed companies, Xinjin Iron and Steel, Meixi Fuji The steelmaking business and assets of the steel joint venture steel mill and Shimen Steel.

After the establishment of Rongxin Steel, the total steelmaking capacity will reach 6.5 million tons. Huaihai State-owned Assets, on behalf of the provincial government, holds 29% of the shares of Rongxin Steel, Fuji Steel holds 20% of the shares of Rongxin Steel, and the remaining 51%. The shares are owned by Rongxin Group.

Without taking into account the competition and grievances between the Department of Economics and the Hu Department, as well as between the Provincial Steel and Mei Steel, after the integration of Rongxin Iron and Steel, in the foreseeable future, it will be possible to launch the Phase II project of Xinjin Iron and Steel. The production capacity will exceed 30 million tons, which will soon become a reality.

The steel production capacity has exceeded 30 million tons, which will be of symbolic significance to the economic development of Huaihai Province. Therefore, the province and Donghua City have pinned their hopes on the comprehensive restructuring of the provincial steel industry. Make room.

Rongxin Steel will be headquartered in Xinjin. After the restructuring plan was approved, all parties signed an agreement and rushed to the establishment in Xinjin on July 8. In the later stage, it will also rely on Xinjin Port to further expand its steelmaking capacity.

On behalf of Huaihai State-owned Assets, Shen Huai and Tang Baocheng rushed to Xinjin to participate in the listing ceremony of Rongxin Steel. Tang Baocheng will be appointed by Huaihai State-owned Assets to join the board of directors of Rongxin Steel.

After the listing ceremony, Shen Huai didn’t stop there, and left Xinjin by car in the afternoon.

Fan Wenzhi, Chen Baoqi, Yamazaki Nobuo and other guests stayed for the evening reception.

After Liang Rongjun was separated from the provincial state-owned assets, he represented Ronshine Group as the general manager of Ronshine Steel, leading the integrated management team; Hu Lin officially represented Ronshin Group as Ronshine after two years of dormancy in Ronshine Group. The chairman of the Iron and Steel Group officially came to the stage and became a dazzling new star.

Marked by the completion of Xinjin Iron and Steel, although Xinjin is not comparable to Meixi and Xinpu, the development speed in the past two years is also extremely fast.

Hu Lin didn’t go out to see Shen Huai, but he always stood in front of the window, watching Shen Huai go away in the car, watching Liang Rongjun come back, and asked him:

“How to deal with Xiling Iron Mine within Huaihai State-owned Assets, there should be some news, right?”

“The preliminary plan is out,” Liang Rongjun nodded. The restructuring plan cannot be completely kept secret. Both the provincial state-owned assets and Xiling Iron Mine need to be fully discussed. After all parties reach an agreement, the plan will be submitted to the province for approval. He Said, “Shen Huai still hopes to transfer all the assets of Xiling Iron Mine to Huaimei, and then the Huaimei Group, Meigang Group, and Changqing Group initiate the establishment of a joint stock company for rectification; and at the same time, it will also be split. Project contracting and construction business, setting up a larger-scale engineering company to prepare for the next step of exporting labor services overseas…”

“Changqing Group negotiated an agreement as early as a year ago to invest 200 million US dollars to acquire a 40% stake in Tangli Iron Mine in East Africa. This time, Meishan Iron and Steel will inject another 400 million US dollars with the mining department of Changqing Group. Accumulated 80% controlling stake in Tangli Iron Mine,” Fan Wenzhi said, “Next, Meigang and Changqing Group will formally develop Tangli Iron Mine, set up an engineering company, and export labor services overseas. Direction – this resource, we still can’t use it now…”

Many African mining areas are undeveloped. To transport iron ore out, it is necessary to build a series of infrastructure including mines, concentrators, iron ore terminals, and 200 kilometers of railways in the mining area. After Meigang is listed in London, a lot of information will be released. It was announced to the public, so they wanted to understand the capital and market operations that Meishan Iron and Steel Co., Ltd. participated in, which was much more convenient than before.

Tangli Iron Mine will start construction in the near future. After Meigang, Changqing Group and Huaimei took over Xiling Mining, they divided the engineering construction business and set up an engineering company. More importantly, it can input a large amount of human resources into the construction and operation of Tangli Iron Mine.

Over the years, Fan Wenzhi and Liang Rongjun have been strengthening the development of mining and other infrastructure projects in order to increase the income of the mining area and divert surplus workers. The number of related technical and construction personnel has accumulated to thousands of people, which can be said to be Xiling Iron and Steel. The foundation was laid for the establishment of the mine officially established Engineering Co., Ltd.

Xiling Iron Mine is a chicken rib and a burden in their hands, but seeing that Mei Steel can eat this chicken rib of Xiling Iron Mine with relish, I feel a little stagnant, but there is no way, Rongxin Iron and Steel has not developed to that. Extent – The domestic steel companies that really go out to find mines are only two or three such as Yanshan Iron and Steel and Zhenhai Iron and Steel. At present, Rongxin Iron and Steel can only focus on expanding domestic steel production capacity first.

Although the CIF price of iron ore is only 200 yuan per ton, it is not very profitable to enter the overseas iron ore market at this time, but last year, China imported 70 million tons of iron ore. Iron ore bases will be built one after another, and the annual import of iron ore will double in the next two to three years, which will directly affect the balance of supply and demand in the international iron ore market.

Therefore, the future trend of iron ore prices rising sharply can still be seen now.

It’s just that Ronshine doesn’t have the ability to run out to find mines yet.

In mature mining areas developed overseas, no one will arbitrarily transfer their rights; undeveloped mining areas require a lot of investment in infrastructure. Meigang and Changqing Group invested 600 million US dollars in Tangli Iron Mine, which is only the first phase of eight The supply of one million tons of iron ore will continue to invest 8 to 1 billion U.S. dollars in capital in the later stage. If Ronshine has this money, it is better to expand production capacity in China.

Although Evergreen Group acquired iron ore in Thailand and other places as early as 1997, it was only after a three-year gestation period that it invested heavily in East Africa last year and acquired the rights and interests of Tangli iron ore with a total reserve of 1.2 billion tons. The scale development should wait until the second phase of Xinpu Iron and Steel is officially launched, and then Lamei Steel will start together.

If it keeps up with the pace of development of Meishan Iron and Steel, Ronshine will have to wait three or four years before embarking on the road of overseas prospecting in Shanghai.

More importantly, after the establishment of Ronshine Iron and Steel, it is close to Meishan Iron and Steel in terms of production capacity, but there is still a lot of gap in profitability.

Meishan Iron and Steel Co., Ltd. issued a notice that the profit in the first half of this year has reached an astonishing 1.2 billion yuan, and the overall listing has raised 3 billion yuan of funds. The cash in hand is not only to meet the construction of the second phase of Xinpu Iron and Steel, but also A lot of surplus is used for the expansion of the upstream of the industrial chain, which is not comparable to Ronshine.

After Ronshine Iron and Steel gets rid of the relevant burdens, the profit in the second half of the year can only barely reach 400 million; only relying on its own profit accumulation for development, Ronshine Iron and Steel is far less than that of Mei Steel.

However, the establishment of Ronshine Iron and Steel has the greatest significance for Ronshine Group, which is that the Ronshine Department can finally fully control a large-scale heavy industry complex, instead of focusing only on Ronshine Bank, Rongxin Bank and Rongxin Group in the past. Financial services such as letter securities. The formation of the troika of Ronshine Steel, Ronshine Real Estate and Ronshine Construction finally consolidated Hu Lin’s position within the Ronshine Department and completed the transfer of power from the Hu family within the Ronshine Department.

In fact, it is somewhat surprising that Shen Huai did not secretly exert resistance in the comprehensive restructuring of Provincial Steel.

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Shen Huai went to Donghua City and met with Guo Chengze, Meng Jiansheng, Zhao Tianming, Chen Bing and others.

Lanjiang Expressway will be completed in one year. Xiapu and Tangzha will jointly establish a bridge industrial park under the Meiqing River Crossing Bridge. As the eastward extension of Meixi New District, the groundbreaking ceremony is also held today.

The relevant area belongs to Xiapu Jinghai Township. Donghua City even advocates that the relevant area be directly assigned to the Meixi New District. Xiapu has also done some work. However, the adjustment and approval of the administrative area takes time, so the joint industrial park is used first. Formally started development, all the infrastructure is actually drawn from Meixi New District. In addition to the east extension of Yanjiang Highway, which was constructed earlier, Zhuxi Avenue and the east extension of Xiamei Highway were also constructed as early as a year ago.

“Xiapu has already met the criteria for applying for the establishment of a county-level city.” After leaving the groundbreaking ceremony and returning to the Nanhu Hotel by car, Guo Chengze took Shen Huai into his car and discussed with him the future of Xiapu in the car, “and the future If Donghua City needs to be developed on a large scale, or it can only go east and integrate with Xiapu. I prefer that Xiapu should be relocated from the county to the district. I would like to ask your opinion?”

Shen Huai nodded and said, “I support it; is there any work that needs my help?”

The difference between counties and municipal districts is huge, most concentrated in the financial power and various administrative approval powers.

The economic aggregates of Tangzha District and Xiapu County are comparable, but when it comes to the fiscal revenue at the district and county level, Tangzha District is now only half of that of Xiapu County, and more local fiscal and tax revenue is intercepted by the municipal finance; The acquisition, storage and transfer of construction land are basically controlled by the city.

If Xiapu can be established as a county-level city, the financial and many administrative powers will be strengthened; if the county is divided into districts, the relevant powers will be greatly weakened, including the power to send construction funds to the Huaihai Bay Government Construction Fund, which will also be transferred to the city. It is no longer under the control of Xiapu.

The strength of the Meisteel Department in Donghua is most concentrated in Xiapu. Whether Xiapu was established as a county-level city or a county was established as a district has the greatest impact on the Meisteel Department. Guo Chengze thought of doing the work of connecting Shenhuai first.

Shen Huai’s promise was too straightforward, but Guo Chengze hesitated, unable to see what he was thinking.

Seeing the suspicious look in Guo Chengze’s eyes, Shen Huai also realized that his promise was too simple, and he could only smile bitterly in his heart.

Xiapu’s local fiscal and tax revenue may exceed 7 billion this year. After several years of development and construction in Lingang New City, the land and property prices are even higher than the urban area. In the future, Lingang New City will generate even more substantial land transfer income. From the perspective of narrow geographical protection, these financial resources are controlled by Xiapu itself, and it is human nature to use it in Xiapu, but it is impossible to achieve balanced and coordinated development in a larger area.

In the future, Donghua will develop into a regional central city. At this time, the urban area is less than 100 square kilometers, which is obviously too small. The key to China’s future urban development pattern.

Of course, Shen Huai didn’t get to the point of trusting Guo Chengze, thinking about communicating with Chen Bing and the others. Guo Chengze really wanted to promote related work, and they didn’t need to put any resistance here.

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The reception dinner was arranged at the Nanhu Hotel. In addition to officials and business representatives from the city, Xiapu County, and Tangzha District, Song Hongqi also brought representatives from Qingsha County to attend the groundbreaking ceremony.

The Lanjiang Expressway and the Meiqing Cross-river Bridge have landed in the Yanjiang Industrial Development Zone of Qingsha County, just on the edge of the Meixi-Qingsha Metallurgical Industrial Park. After more than a year of cooperation between the two parties, including Fengli’s Tudu board project, there have been 20 investment invitation construction projects in the metallurgical industrial park.

Song Hongqi presided over the work of the Qingsha County government at the beginning of the year, which was also a helpless move that was hopeless to kick Wei Nanhui out, while Wei Nanhui officially continued to serve as the secretary of the Qingsha County Party Committee as a member of the Standing Committee of the Pingjiang Municipal Party Committee.

Although Wei Nanhui’s political resources are far less than that of Song Hongqi~www.readwn.com~, when it comes to his bold and aggressive work style and ability to seize opportunities, Song Hongqi can’t compare. This is from the brewing process before the regional cooperation last year. , is fully reflected.

Of course, Wei Nanhui is not a person who doesn’t know how to advance and retreat, but he is not willing to be kicked out by Song Hongqi, but he did not treat Song Hongqi as an underdog, and the work of the county government still allows him to use his hands and feet as much as possible.

Xie Zhi also attended the groundbreaking ceremony in the afternoon, but she didn’t see her standing with Song Hongqi at the reception dinner. Shen Huai felt a little strange.

Xie Zhi and Song Hongqi have been separated for a long time, but they are still married. If there is no special reason, Xie Zhi will not accompany Song Hongqi to the reception dinner, but if something happens, Song Hongqi will not attend the reception dinner calmly.

Although Shen Huai had doubts in his heart, he didn’t think much about it, and it couldn’t get in the way of his affairs.

After the dinner was over, Tang Baocheng and the others had to rush back to Xucheng overnight.

Shen Huai rarely came to Donghua. Zhou Yu and Xiong Dini were both “waiting to feed” in Donghua. Naturally, they could not leave the night without a conscience. After the dinner, they chatted with Zhao Tianming and Zhou Zhibai for a while, and then they made excuses and left the hotel. Take the car that Zhou Yu drove out of the corner.

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