The hottest profit growth point highlights the gro

Multiple profit growth points highlight the growth of Anyang Steel

Guide: first, medium and heavy plate has become the highlight of Anyang steel products. With the implementation of the three-step development strategy of Anyang steel, all key projects have been promoted in an orderly manner. 2003 and 2004 have become the years with the largest investment intensity and the largest number of construction projects in the history of Anyang steel. Capacity expansion and structural optimization have made Angang form a number of new

I. medium and heavy plate has become the highlight of Anyang Iron and steel products

with the implementation of the "three-step" development strategy of Anyang Iron and steel, various key projects have been promoted in an orderly manner. 2003 and 2004 have become the years with the largest investment intensity and the largest number of projects in the history of Anyang Iron and steel. Capacity expansion and structural optimization have made Angang Steel form a number of new profit growth points, and the historical inflection point of its production development is forming. The projects completed and put into operation successively in the past two years and scientific planning have laid a good foundation for the continuous growth of Anyang Iron and steel in the next few years

medium and heavy plate is an important highlight of Anyang Iron and Steel's current leading products, and it is also the main source of its profit growth in the past two years. At present, the contribution rate to the company's profit has increased from 18.73% in 2001 to 36.76% in 2003, and continues to grow with the completion of several major plate projects. In the first four months of this year, in the comparison of technical and economic indicators of similar enterprises across the country, the quality index of medium plate products produced by Anyang Iron and Steel No. 2 rolling mill jumped to the first in the country, and its comprehensive pass rate of products ranked first after being among the best for three consecutive years, reaching 99.99%. The marine steel plate produced by Anyang Iron and steel has sold nearly 100000 tons in the past four years, without any quality problems, and has passed the joint certification of the classification society factories of the United States, Britain, Germany, Japan and other seven countries. With the expansion of its production capacity, medium and thick plates of Anyang steel, which are excellent in quality, are becoming a huge driving force for the development of Anyang steel

medium and heavy plate is one of the plates in short supply in China's steel industry at present. At present, China is in another upgrading cycle of heavy industrialization, and the demand growth rate of high-end plate products in the steel industry is growing at a rate of 25% - 30%, but the current domestic production capacity is far from meeting the needs. Therefore, a large number of plates need to be imported every year. According to the statistics of China Steel Association, from January to May this year, the national medium and heavy plate production enterprises produced 10.68 million tons of medium and heavy plates, an increase of 16% year-on-year. As the related industries such as automobile, shipbuilding, power equipment, mining machinery, port machinery, pressure vessel, etc. are still in a boom state in the second half of the year, from the perspective of supply and demand, the output of the existing medium and heavy plate mill is nearly saturated, and the new capacity is limited. The growth rate of plate supply in the second half of the year can basically not meet the growth rate of downstream industries. After late April, 2004, domestic steel prices showed a comprehensive downward trend, but the plate prices represented by medium and heavy plate and cold-rolled sheet basically showed a high and volatile trend, remained strong, and showed outstanding resistance against the market downturn, which also reflected its market supply and demand situation. According to the prediction of the iron and Steel Industry Association, the production capacity of medium and heavy plates in China in 2005 was 38.5 million tons, but the demand will reach 40.11 million tons, which is obviously in short supply

in the peripheral market, the pressure of direct import of medium and heavy plates is negligible, and the international market price of medium and heavy plates remains high. In 2003, China imported a total of 37 million tons of steel, of which plate products accounted for more than 90%. In 2003, China imported 3.83 million tons of ordinary medium and thick plates, an increase of 206 tons over the previous year, an increase of more than 200%; From January to May this year, China's import of medium and thick steel plates will not be accurate at 1.42 million tons, but still maintain a high import volume. In China, the production of medium and heavy plate has the largest demand for millimeter width of special plate

changes in the import volume of major steel varieties in China in 2003

Anyang Iron and steel produced 3.66 million tons of steel and 3.41 million tons of steel in 2003, realizing a profit of 1.126 billion yuan. Its steel output ranks in the second group among China's steel listed companies, and its realized profit ranks fourth among China's steel listed companies, far exceeding its peers at the same level of steel output. This shows that the steel products of Anyang Iron and Steel Co., Ltd. not only have high added value, but also have proper cost control and strong market demand, so that the huge potential profit space of the products can be transformed into the real performance of the enterprise. The popularity of Anyang steel plate market is the result of the company's foresight and adaptation to market demand

the second and third profit growth projects have been completed and put into operation successively.

Anyang Iron and Steel Co., Ltd. on the basis of studying the development direction of the metallurgical industry at home and abroad and the development trend of steel enterprises in the surrounding areas of the company, combined with the actual situation of the company, concentrated on developing high-end products such as plates, optimizing product structure and expanding product capacity. This year and next year, the three major profit growth projects of the company have been completed and put into operation, and have entered the harvest period, which has become the internal driving force for the growth of enterprise performance:

1. The 100 ton converter project of Anyang Iron and Steel Co., Ltd. expands the steel production capacity:

the total investment of the 100 ton converter project of Anyang Iron and Steel Co., Ltd. is 220 million yuan, with an annual output of 1.2 million tons of molten steel. The project was started in June 2003, put into operation in March 2004, and reached production in May. In less than a year, the construction, commissioning and production capacity of the project were fully completed, creating two records of the same level furnace type in China, "the shortest construction project cycle and the fastest project production rate". With the commissioning of the project, Angang Steel will form a new production line of 100 ton converter - 100 ton refining furnace - slab continuous casting - medium plate mill, mainly producing plain carbon steel, high-quality carbon steel, low alloy steel, spring steel, cold pier steel, shipbuilding plate, etc., so that the product grade of the company will be greatly improved and the market competitiveness will be further enhanced

2. 2800mm Medium Plate Mill phase II increases the output of medium and heavy plates:

at present, the 2800mm Medium Plate Mill phase I of Anyang Iron and steel can produce 800000 tons of medium and heavy plates, which is mainly used in bridges, shipbuilding, boilers, pressure vessels and automobile girders. It is the main production source of medium and heavy plate products of the company at present

2800mm medium plate mill phase II is expected to have a total investment of 200million yuan. On the basis of the original 2800mm Medium Plate Mill, the project will add a primary mill, cooling bed, finishing line, etc., so that the product output will be increased from the current 800000 tons/year to 1.2 million tons/year, the product surface quality and plate shape will be further improved, and the equipment level will enter the first-class level in the domestic medium plate industry. After the project is put into production, the annual efficiency benefit will be more than 150million yuan

3. 120 ton converter Steckel mill improves plate production capacity:

this project is a fund-raising project of the company, with a total investment of 3.3 billion yuan. The relevant supporting projects of the project have been started one after another, and are currently progressing smoothly. It is planned that all the projects will be put into operation by the end of September 2005

the project adopts the world's advanced process of longitudinal rolling of medium thickness and extra wide continuous casting slabs into medium plates or coils by direct hot delivery Steckel mill, which has the advantages of high production efficiency, high product quality, temporary suspension rate of high-end products since the opening of the market on the afternoon of the 29th, low energy consumption and low production cost. The main technology and equipment of the project are at today's international advanced level, including the cooperation of steel-making and rolling equipment with Danieli company of Italy, the cooperation of continuous caster with Sigmar Demark company of Germany, and the procurement of electrical equipment from General Electric Company of the United States. The equipment and technology are from first-class companies in various related industries around the world, ensuring the overall level of the project. The construction scale of the project is 1.166 million tons of steel billets per year; 1.1 million tons of medium and heavy plates (coils). Among them, the proportion of special plate is 62%, pipeline steel plate accounts for 19%, shipbuilding plate accounts for 12%, boiler plate accounts for 6%, pressure vessel plate accounts for 5%, low alloy steel plate accounts for 15%, automobile girder plate accounts for 2%, and bridge plate accounts for 3%. The production of medium plate products with a maximum width of 3200mm and a thickness of more than 3mm fills the wide and thin domestic plate market gap that cannot be produced by mm thick and 1700-3200mm wide hot strip mills and medium plate mills

in order to concentrate funds to adjust the structure of the new line, the company will complete the construction of 6m before 2005 × There are six major projects: 55 hole coke oven, 360m2 Sintering Machine, 2200m3 blast furnace, 120 ton converter, Steckel mill and 23500m3/h oxygen generator, so as to realize large-scale equipment, process modernization and product specialization

among the above three projects, 100 ton converter has increased the company's steel production capacity, 2800mm Medium Plate Mill phase II has increased the current output of leading medium and heavy plate products, and 120 ton converter Steckel mill will not only improve the company's plate production capacity, but also improve the company's plate production process. Under the market background of medium and heavy plate in short supply, the above three projects will become the three major profit growth points of the company in the past two years

III. future growth of thin plate engineering planning

the profit growth projects completed and put into operation successively by Anyang Iron and steel in the past two years are mainly medium and heavy plate projects. The projects planned in the next few years are mainly thin plate projects. At present, the self-sufficiency rate of thin plates in China is less than 50%, and its shortage is higher than that of medium and heavy plates. Some high-quality cold-rolled sheets, such as automobile panels and household appliances, cannot be mass produced in China. Although China has correspondingly increased the construction and transformation of plates and strips, the supply still exceeds the demand. Sheet production represents an important development direction of steel sheet in China in the future

from 2006 to 2008, Anyang Iron and steel will invest 5billion yuan to build a hot continuous rolling sheet production line, forming a production capacity of 2.4 million tons of steel and 2.3 million tons of sheet; From 2008 to 2010, the company will build a new cold-rolled sheet production line with a production scale of 1.3 million tons, and its main products are cold-rolled sheet, galvanized sheet and color coated sheet

after the successful realization of the "three-step" development strategy, Angang will form the development goal of product serialization and specialization, and finally form several advanced products such as 100 ton electric furnace 2800mm Medium Plate, 100 ton electric furnace high wire, 120 ton converter Steckel mill and hot rolled sheet. E. according to the scientific understanding of the theoretical principle and practical experience of the method, the production line will eventually form line bar, medium plate and furnace coil Continuous rolled steel sheets account for one-third of the product structure, and the annual output of steel will reach 7.5 million tons

generally speaking, companies have multiple business operations, and how to make a portfolio of leading products is a long-term consideration for enterprise managers. Boston matrix in management is often used to evaluate the rationality of corporate investment. It divides the company's business into problems, stars, cash cows and thin dogs. The problem and thin dog business are unsatisfactory businesses in terms of market growth rate and market share, and need to be further developed or cleaned up in investment. Cash cow business refers to the business with low market growth rate and high relative market share, which is the source of enterprise cash. Star business refers to the business with high market growth rate and high relative market share

Angang Steel's current wire business is one of the main sources of the company's income, which can be regarded as a Taurus business, providing cash support for the company's new investment; The high gross profit margin and good growth of medium and heavy plate products are the main performance growth of the company now and in the next two years. In order to reach the source of ultra light composite structure, it can be regarded as the current star business; The planned thin plate business is the star business in the future and the profit growth point in the future. The three product series of wire rod, medium and thick plate and thin plate of Anyang steel are in the stage of stable development, rapid development and planning development respectively, which reflects the direction of optimizing the product structure of the company and lays the foundation for the sustained and long-term growth of Anyang Steel's performance