The Development History of Du Shuanghua

From 200/KLOC-0 to 2002, Du Shuanghua visited Tangshan, Dalian, Qinhuangdao, Tianjin, Changli, Huanghua, Weihai, Qingdao and other places, but all of them were abandoned because there were large steel enterprises there, which were approved by the government and did not meet the conditions for building factories. A manager inside Qinggang said: "At that time, Du Shuanghua also approached us to talk about cooperation, but we felt that he did not have great advantages in technology and capital, so the negotiation failed. In August 2002, when Du Shuanghua attended the global steel conference, he learned that Italian company Dagnelie had a set of H-beam equipment, so the manufacturer did not need to change hands urgently. After quickly investigating the market prospect of H-beam, Du Shuanghua was keenly aware of the opportunity.

When ordering equipment, Du Shuanghua follows the consistent principle of "close to the origin and market of raw materials" and chooses Rizhao as the landing city of the project. Rizhao is an important steel structure base in China. At the beginning, Du Shuanghua was first promoted from Rizhao City to Kuishan, a national planning site near Rizhao Port. However, in order not to affect the overall national planning, 5,687 mu of land had to be requisitioned in hushan town to cooperate with Laigang Group, which has experience in H-beam production. On February 29th, 2003, Du Shuanghua signed a tripartite agreement with Rizhao Municipal Government and Laiwu Iron and Steel Group on Rizhao Iron and Steel Project. On March 3, 2003, Kloc-0, Rizhao Steel started construction; On May 6, 2003, Du established Rizhao Xinri Iron and Steel Co., Ltd., which was changed to Rizhao Iron and Steel Holding Group Co., Ltd. on October 22, 2003. The registered capital of Rizhao Iron and Steel was 220 million yuan, including 200 million yuan from Jinghua Innovation Group and 20 million yuan from Laiwu Jinghua Welded Pipe Co., Ltd. ... It was originally planned that 50% would be contributed by Hebei Jinghua Innovation Group and Hong Kong Yujin Company, and the remaining 50% would be contributed by Shandong Laiwu.

Rizhao Iron and Steel Company is located in Hushan Town, Rizhao City, near Lanshan Port, covering an area of 5,867 mu. However, Du Shuanghua's first favorite address was actually not hushan town, but Kuishan, the planning site of Shandong Iron and Steel Group near Rizhao Port.

Later, in order to avoid the overall planning of Shandong Iron and Steel Group, Du Shuanghua moved.

Before Du Shuanghua, Shougang, Baosteel and Jigang all had plans to set up factories in Rizhao. Why did Du Shuanghua get the support of Rizhao Municipal Government?

Rizhao is a national key steel construction base, and the Rizhao municipal government has always wanted to set up a separate steel plant, which is more conducive to increasing fiscal revenue. Shougang, Baosteel and Jigang are all outsiders after all.

Du Shuanghua once said in a self-report material, "In the whole construction stage of Nippon Steel, it depends on the care and support of provincial and municipal leaders." It is for this reason that Rizhao Steel survived the disaster. Due to the steel boom in China in 2003, blind investment and redundant construction intensified. On February 4th, 2004, the State Council held a teleconference to strictly control over-investment in some industries. The meeting asked all localities to carefully clean up the investment and construction projects in the fields of steel, electrolytic aluminum and cement, and report the results. Immediately, the State Council sent a joint inspection team to key areas for supervision and inspection, and the "Tieben Incident" that caused a sensation in the whole steel industry broke out immediately.

At that time, Rizhao Iron and Steel was not approved by the National Development and Reform Commission, and its life was hanging by a thread. An insider of Rizhao Steel told the reporter that when the National Development and Reform Commission cleaned up the fixed assets investment and inspected Rizhao Steel in the second half of 2003, the Shandong provincial government made a guarantee to the Development and Reform Commission. The main content of its guarantee is to "cut some small steel projects and keep high-quality steel projects on the basis of ensuring the total steel output in Shandong Province unchanged". It is precisely because Rizhao Steel was included in the high-quality steel project that it was spared from production suspension. In addition, Du Shuanghua is unusually low-key, and the outside world rarely knows that there is a Rizhao Steel in Shandong.

Another major turning point in Rizhao Iron and Steel's early development was the withdrawal of capital from Laigang Group.

Du Shuanghua once said in the above-mentioned self-report materials: "When we (Nippon Steel) cooperated with Laigang, the two sides failed to reach an agreement on the mode of cooperation and capital operation, and Laigang withdrew all its shares and technical personnel. In terms of funds, due to the withdrawal of Laigang, the state tightened monetary policy and there was a shortage of funds. " At that time, Du Shuanghua used his accumulated banking relationship in Hebei to "put out the fire" urgently. With Jinghua Innovation as the guarantee, it obtained loans of nearly 2 billion yuan from China Agricultural Bank Hengshui City Sub-branch, China Construction Bank Rizhao Sub-branch, Industrial Bank and Rizhao Commercial Bank, and obtained "great help from Rizhao Municipal People's Government, Shandong Provincial People's Bank and other units".

After Laigang's withdrawal, Rizhao Steel faced an empty nest of technology. Although Du Shuanghua said that "we can only re-recruit technicians and independently study and use technology", according to a reporter's investigation, Rizhao Steel obtained the first batch of "H-beam" technical drawings because Du Shuanghua retained some technicians of Laigang with high salary, which laid the foundation for Rizhao Steel to take "H-beam" as its core business in the future.

According to a senior steel industry research expert, Laigang's withdrawal is not only due to the difference in profit distribution and risk taking, but also related to the behavior style of state-owned enterprises and private enterprises. "The examination and approval procedures for new projects of state-owned steel enterprises are long and complicated, and various interests need to be balanced. Once a private steel enterprise takes a fancy to a project, it will start soon. "

Previously, on the fast-rising express train of China's iron and steel industry, Du Shuanghua had a smooth journey, but Nippon Steel encountered unprecedented resistance from its initial construction. According to Du Shuanghua's recollection, in mid-March 2003, shortly after the company started construction, it was hit by the heavy snow that had not happened in Rizhao for 30 years. From June to September, there were as many as 47 consecutive rainy days, and the roads were muddy. Large vehicles and construction machinery can't be used, and many equipments have to be carried by people. What is even more surprising is that the SARS epidemic has ravaged the whole country, and traffic control in various places has prevented procurement personnel from getting out and construction equipment from getting in. At the same time, in the cooperation with Laigang, because the cooperation mode and capital operation have not reached an agreement, Laigang has withdrawn its shares and technical personnel before the enterprise has been put into production. Nisteel had to recruit technicians again and learn by doing.

Facts have proved that Rizhao, where Du Shuanghua is located, has a strategic vision. Liao Haiting, secretary of the Party Committee of Nippon Steel, told this newspaper that the freight of iron ore from Rizhao Port to Nippon Steel is only 2.4 yuan/ton, but if it is transported to Shandong mainland, it will cost more than 100 yuan, and the cost of transporting steel back to the port will double. Nisteel needs1000000 tons of ore every year, and this alone has a profit of 2 billion yuan more than that of mainland enterprises.

In 2004, the output of Nippon Steel was only 6.5438+0.07 million tons, and the sales income was 2.5 billion yuan. However, in 2007, the output of Nippon Steel reached 7.75 million tons, an increase of 7 times, and the sales income was 28.6 billion yuan, more than 9 times that of 2004. The explosive growth in just five years has made Nippon Steel the most profitable steel enterprise in Shandong. In 2008, the operating income of Shangang was 65.438+020.505 billion yuan and the profit was 2.7 billion yuan. However, in 2009, Nippon Steel achieved an operating income of 4,765,438+87 million yuan, but its profit was as high as 6 billion yuan.

The Nippon Steel Project started construction on March 3, 20031day, and it only took 18 1 day, which created a miracle in the history of metallurgical construction in China and was called "Nippon Steel Speed" by relevant leaders and insiders. By the end of 2004, the company had completed the project with a total investment of 2.7 billion yuan and an annual production capacity of 2 million tons. In July 2004, Rizhao Steel was listed as the fourth largest steel industry base in the development strategy of 1 167 by Shandong provincial government.