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Text Chapter 1020 Undue Resistance

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

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

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

    For such an industry with narrow development space and limited potential, it has to support 22,000 to 3,000 employees. You can imagine the heavy burden.

    As far as Ronshine is concerned, there is nothing wrong with taking over the Xiling Iron Mine, but they would rather spend hundreds of millions of dollars to replace mining and mineral processing equipment, or get rid of seriously redundant employees.

    ¡°It¡¯s just that it¡¯s very difficult to retire 20,000 employees in Xiling Mining Area at one time; at the same time, the cost of dismissal will not be too low.

    The Japanese-owned Fuji Steel also participated in this comprehensive restructuring of Provincial Steel.

    As for Fuji Steel, it does not want to touch upon too sensitive social issues in China, so it will not get involved in the heavy burden of the Xiling Iron Mine.

    After many negotiations, the restructuring plan was finally finalized in late June. Rongxin Steel United Co., Ltd. was jointly established by Rongxin Group, Huaihai State-owned Assets, and Fuji Steel. It accepted the approval of provincial steel listed companies, Xinjin Steel, Meixi Fuji  Steelmaking joint venture steel plant, Shimen Steel's steelmaking business and assets.

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

    Not mentioning the competition and grievances between the Economic System and the Hu System, Provincial Steel and Meishan Iron and Steel, after the integration of Rongxin Steel, it will be possible to launch the second phase of Xinjin Steel in the foreseeable future. Huaihai Provincial Steelmaking Corporation  The production capacity exceeding 30 million tons will soon become a reality.

    The steel production capacity has exceeded 30 million tons, which will have a symbolic significance for the economic development of Huaihai Province. Therefore, the province and Donghua City have placed their hopes on the comprehensive restructuring of provincial steel. This time, the narrow factional disputes will not have much impact.  Give some room.

    Ronxin Steel will be headquartered in Xinjin. After the restructuring plan was approved, all parties signed an agreement and it will be established in Xinjin on July 8. In the later period, it will rely on Xinjin Port to further expand steelmaking capacity.

    On behalf of Huaihai State-owned Assets, Shen Huai and Tang Baocheng rushed to Xinjin to attend 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 stay much longer and left Xinjin by car in the afternoon.

    Fan Wenzhi, Chen Baoqi, Yamazaki Nobuo and other guests stayed to participate in the evening reception.

    After Liang Rongjun separated from the provincial state-owned assets, he represented Rongxin Group as the general manager of Rongxin Steel and led the integrated management team; Hu Lin also officially represented Rongxin Group as Rongxin Steel after two years of dormancy.  The chairman of Iron and Steel has officially stepped onto the stage and become a dazzling new star.

    With the construction of Xinjin Iron and Steel as a symbol, although Xinjin is not comparable to Meixi and Xinpu, its development speed in the past two years has been extremely fast.

    Hu Lin did not go out to see Shen Huai off, but he stood at the window the whole time, watching Shen Huai drive away in the car, watching Liang Rongjun come back, and asked him:

    "There should be some news about how Huaihai State-owned Assets will deal with the Xiling Iron Mine, right?"

    "The preliminary plan is out," Liang Rongjun nodded. The restructuring plan cannot be kept completely confidential. Full discussions are needed within the provincial state-owned assets and Xiling Iron Mine. Only after all parties reach an agreement will the plan be submitted to the province for approval. He  Said, "Shen Huai still hopes to transfer all the assets of Xiling Iron Mine to Huai Coal, and then Huai Coal Group, Meishan Iron and Steel Co., Ltd., and Changqing Group will initiate the establishment of a joint-stock company for rectification; and it will also be spun off at the same time.  Engineering contracting and construction business, establishing a larger engineering company, and preparing for the next step of exporting labor services overseas"

    "Evergreen Group negotiated an agreement a year ago to invest US$200 million to acquire 40% of the equity of Tangli Iron Mine in East Africa. This time, Meishan Iron and Steel will inject another US$400 million in capital with the mining department of Changqing Group.  "We have acquired a total of 80% of the controlling stake in Tangli Iron Mine," said Fan Wenzhi. "Next, Meishan Iron and Steel and Changqing Group will officially develop Tangli Iron Mine, establish an engineering company, and export labor services overseas. It will be clear  Direction¡ª¡ªWe still can¡¯t use this resource now¡­¡±

    Many of Africa's mining areas are undeveloped. To transport iron ore out, a series of infrastructure including mines, ore processing plants, iron ore terminals, and 200 kilometers of mining area railways must be built. After Meishan Iron and Steel is listed as a whole in London, a lot of information will be released.  It is announced to the outside world, so they want to understand the capital and market operations in which Meishan Iron & Steel Co., Ltd. participates. It is much more convenient than before.Tangli Iron Mine will start construction in the near future. After Meishan Iron and Steel, Changqing Group and Huaimei Mining took over Xiling Mining, they divided the engineering construction business and established an engineering company. In addition to diverting the currently severely surplus employees of Xiling Iron Mine,  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 the construction business of mines and other infrastructure projects in order to increase the income of the mining area and divert surplus employees. The number of relevant technical and construction personnel has accumulated to thousands. It can be said that Xiling Iron  The foundation was laid for the establishment of Mine Engineering Co., Ltd.

    The Xiling Iron Mine is a piece of cake in their hands, a burden. But seeing that Meishan Iron and Steel can enjoy the tasteless piece of the Xiling Iron Mine with gusto, I feel a little stymied, but there is nothing I can do about it. Rongxin Steel has not developed to that level yet.  Extent - At present, there are only two or three domestic steel companies that have really gone out to look for ores, such as Yanshan Iron and Steel and Zhenhai Iron and Steel. Rongxin Steel can only focus on expanding domestic steel production capacity at present.

    Although the CIF price of iron ore is only 200 yuan per ton, and it is not very profitable to enter the overseas iron ore market at this time, the country imported a total of 70 million tons of iron ore last year. With many layouts along the coast and along the river,  With the continuous construction of steel bases, the annual imported iron ore will double in the next two to three years, which will directly affect the supply and demand balance of the international iron ore market.

    Therefore, the trend of sharp rise in iron ore prices in the future can still be seen now.

    It¡¯s just that Rongxin doesn¡¯t have the ability to go out and look for minerals yet.

    In mature mining areas developed overseas, no one will transfer rights and interests casually; in undeveloped mining areas, a large amount of money must be invested in infrastructure. Meishan Iron and Steel and Changqing Group invested US$600 million in the Tangli Iron Mine, which is only eight dollars per phase.  With the supply of one million tons of iron ore, a huge amount of funds of 8 to 1 billion US dollars will be invested in the future. If Ronshine has this money, it is better to expand production capacity domestically first.

    Although Evergreen Group purchased 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, acquiring the rights and interests of Tangli Iron Mine with a total reserve of 1.2 billion tons.  Large-scale development should wait until the second phase of Xinpu Steel is officially launched before launching it together with Mei Steel.

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

    More importantly, after the establishment of Rongxin Steel, it is close to Meishan Iron and Steel in terms of production capacity, but there is still a big 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, and the overall listing has raised another 3 billion in funds. The cash in hand can not only meet the construction of the second phase of Xinpu Iron and Steel, but also  There is a lot of room for expansion in the upstream of the industrial chain, which is not comparable to Ronshine.

    After Rongxin Steel gets rid of the relevant burdens, its profit in the second half of the year can only barely reach 400 million; relying solely on its own profit accumulation for development, Rongxin Steel is far behind Meishan Steel.

    However, the greatest significance of the establishment of Rongxin Steel to Rongxin Group is that Rongxin Group can finally fully control a huge heavy industry conglomerate, unlike in the past, which only focused on Rongxin Bank and Rongxin Bank in terms of structural focus.  Securities and other financial businesses.  The formation of the troika of Rongxin Steel, Rongxin Real Estate and Rongxin Construction finally consolidated Hu Lin's position within the Rongxin Department and completed the transfer of power of the Hu family within the Rongxin Department.

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

    ***************************

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

    The Lanjiang Expressway will be completed in one year. Xiapu and Tangzha will jointly establish a bridge industrial park under the Meiqing Cross-River Bridge as an extension of Meixi New District to the east. The groundbreaking ceremony was also held today.

    The relevant area belongs to Jinghai Township, Xiapu. Donghua City even advocates directly assigning the relevant area to Meixi New District. Xiapu is also doing the work, but the adjustment and approval of the administrative area takes time, so it is first based on the joint industrial park.  In the formal start of development, all infrastructure is actually led from Meixi New Area. In addition to the east extension of the highway along the river, the east extension of Zhuxi Avenue and Xiamei Highway were also constructed a year ago.

    "Xiapu has long met the criteria for applying to establish a county-level city." After coming out of the groundbreaking ceremony and taking a car back to Nanhu Hotel, Guo Chengze pulled Shen Huai into his car and discussed with him the future of Xiapu in the car. "And in the future  Should Donghua urban area be developed on a large scale, or can it only go east and integrate with Xiapu. I would also advocate that Xiapu be withdrawn from the county and established as a district. I would like to ask your opinion?"

    Shen Huai nodded and said, "I support it; is there any work you need my help with?"

    Districts between counties and municipal districtsThe differences are huge, and they are most concentrated in financial power and various administrative approval authorities.

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

    If Xiapu can be established as a county-level city, financial and many administrative powers will be strengthened; if the county is removed and established as a district, the relevant powers will be significantly weakened, including the power to transfer 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 local area.

    The power of the Meishan Iron and Steel Department in Donghua is most concentrated in Xiapu. Whether Xiapu will be established as a county-level city or removed from a county to become a district will have the greatest impact on the Meishan Iron and Steel Department. Guo Chengze wants to do the work of connecting Shenhuai to Huaihe River first.

    Shen Huai agreed so simply that Guo Chengze hesitated, unable to see what he was thinking.

    Seeing the suspicion in Guo Chengze's eyes, Shen Huai also realized that he had agreed too simply, 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, land and property prices are even higher than those in the urban area. In the future, the revenue from large-scale land transfers in Lingang New City will be even more considerable.  From the perspective of narrow regional protection, these financial resources are controlled by Xiapu itself, and it is human nature to use them in Xiapu. However, if we want to achieve balanced and coordinated development in a larger area, it is not possible.

    Donghua will develop into a regional central city in the future. At this time, the urban area is less than 100 square kilometers, which is obviously too small. At this time, Guo Chengze proposed to remove Xiapu from the county and turn it into a district. He also saw that this was the only way to open up Donghua.  The key to China¡¯s future urban development pattern.

    Of course, Shen Huai did not confide in Guo Chengze. He wanted to communicate with Chen Bing and the others. If Guo Chengze really wanted to promote relevant work, they would just not exert any resistance.

    ****************************

    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 people to attend the groundbreaking ceremony on behalf of Qingsha County.

    The Lanjiang Expressway and the Meiqing Cross-River Bridge are located in the Qingsha County Yanjiang Industrial Development Zone, just on the edge of the Meixi-Qingsha Metallurgical Industrial Park.  After more than a year of cooperation between the two parties, there are already 20 investment and construction projects in the Metallurgical Industrial Park, including Fengli's coated plate project. Both parties advocate that the second phase of the cooperation park can be expanded to the east by an additional two square kilometers.

    Song Hongqi took charge of the Qingsha County Government at the beginning of the year, which was a helpless move with no hope of kicking Wei Nanhui out. Wei Nanhui officially continued to serve as Qingsha County Party Committee Secretary as a member of the Standing Committee of the Pingjiang Municipal Party Committee.

    Although the political resources Wei Nanhui has access to are far less considerable than those of Song Hongqi, when it comes to his bold and aggressive work style and ability to seize opportunities, Song Hongqi cannot compare. This was fully reflected in the preparation process before the regional cooperation the year before last.  .

    Of course, Wei Nanhui is not a person who knows how to advance and retreat. He is just unwilling to be kicked out by Song Hongqi, but he does not treat Song Hongqi as a lost dog. 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 was not seen standing with Song Hongqi at the reception dinner, which made Shen Huai feel 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 attend 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 too much about it because it didn't affect him.

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

    Shen Huai rarely came to Donghua. Zhou Yu and Xiong Dini were both "waiting for food" in Donghua. Naturally, they couldn't leave that night without conscience. After the dinner, he chatted with Zhao Tianming and Zhou Zhibai for a while, then found an excuse and walked out of the hotel.  Sitting in the car Zhou Yu drove out from the corner.
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