Sheng Magnesium Industry: A Chongqing Zai’er’s Magnesium Dream

——The entrepreneurial story of Chairman Cao Jianyong

Cao Jianyong: Chairman of Chongqing Boao Magnesium and Aluminum Metal Manufacturing Co., Ltd. and General Manager of Chongqing Shengmei Magnesium Industry Co., Ltd.

The magnesium industry is no stranger to Chongqing’s manufacturing industry.

There are currently three large-scale magnesium industry companies in Chongqing: Chongqing Magnesium Industry, Boao Magnesium Aluminum, and Shengmei Magnesium Industry.

The establishment of the three companies is related to Cao Jianyong, who is the promoter and practitioner of Chongqing's magnesium industrialization.

I have known Cao Jianyong for nearly twenty years. At that time, I was still working in Wansheng, a remote mountainous area in Chongqing.

This is an old mining area. In addition to coal, it is also rich in dolomite, soapstone and other resources related to magnesium metal.

Later, he and I became classmates in the graduate class of Peking University (Chongqing).

Later we became comrades in the trenches, drinking buddies at the same table, and literary friends in a group of literary magazines...

I remember that during the National Day in 2015, we drank for three During the tour, I wrote an impromptu poem to Chairman Cao Jianyong:

National Day and Chairman Cao Jianyong of Shengmei Magnesium

? Reciting Guo Xiaochuan's "Toast Song"

Remember that year

At the roadside shop in Taozidang

With Brother Jianyong

Drinking Laobaigan from an earthen bowl

Autumn wind rustling

After three rounds of wine

You sang

Excerpts of the toast song...

"It rains in the dog days of summer

Thunder against thunder

Battle in Zhuxian Town

Hammer against hammer

Tonight we will fight against each other

Cup"

You are full of affection

With tears in your eyes...

Remember that year

On the boat on the Jialing River

With brother Jianyong

Raising a big glass to drink Shixian

The cold wind is biting

The wine is in full swing

You chant Ode

Excerpts from the toast song...

"Soothing wine

A thousand cups will not make you drunk

Intimate words

I don’t need to say too much

Tonight

This is a party to celebrate the good harvest in the auspicious snow”

You are full of ambition

Eyes It is full of hope...

Remember this year

In the circle of Peking University WeChat

With brother Jianyong

Drinking Moutai with a gold cup

The warm wind blows

Thousands of miles away

You sing in the wind

The melody of the toast song...

"Fill up the wine

Raise the glass high

A glass of wine

Open your heart

The passionate wine

Since ancient times "Follow me"

You are so beautiful

Your eyes are full of joy of victory...

Wen Ding/2015.10.3. Jialing Riverside, Chongqing

Cao Jianyong got involved in the magnesium industry in 2000, promoted the commercial use of motorcycles in 2002, and then fully used it in the industrialization of power tools and auto parts.

In 2002, the news that Chongqing’s first magnesium alloy motorcycle rolled off the production line caused a sensation. However, in the following more than ten years, this industry gradually faded out of the media’s sight.

The industrial opportunities brought by the rise of motorcycle gangs

When Cao Jianyong was first known to the Chongqing business community, he was still the assistant to the president of Loncin Group.

Before 2000, China exported more magnesium metal, and its export volume once accounted for 70% of the world trade volume.

In China, due to concerns that this material is easy to burn and explode, it is rarely used in large-scale industrial production.

Since there are technical risks in magnesium processing, why do developed countries in Europe and the United States import magnesium metal in large quantities?

Chinese materials experts began to track the latest international applications of magnesium materials and concluded that magnesium alloy parts have been widely used in the automotive field abroad.

In 1999, five academicians of the Chinese Academy of Engineering, led by Shi Changxu, a leading figure in the field of materials science in China, wrote a letter suggesting accelerating the industrialization project of magnesium alloys.

Chongqing does not produce magnesium and has almost no expertise in magnesium alloy processing. However, at this time, Chongqing has a sudden opportunity - the rise of motorcycle gangs.

In 2000, the Chongqing Motorcycle Gang ushered in the best era of development: at that time, the domestic market was highly profitable, the overseas market was fully open, and various companies had accumulated enough wealth. What everyone wanted more was How to find new concepts to gain maximum market returns.

Cao Jianyong, who is good at financial securities, is currently serving as the assistant to the president of Loncin. The prospect of the magnesium alloy industry gives him enough space for themes.

Loncin soon invested in Chongqing Magnesium Company, and Cao Jianyong served as general manager.

In April 2001, the first domestic all-magnesium concept motorcycle was successfully developed in Loncin. The use of magnesium alloy in 12 parts resulted in a weight reduction of 6 kilograms.

In 2002, Loncin magnesium alloy motorcycles were officially launched. The new concept lived up to expectations. A single motorcycle was sold for 200 yuan more than ordinary motorcycles.

When flour was more expensive than bread

Subsequently, he completed a joint venture with the Canadian Mariden Company, the world's largest magnesium alloy processing company, and began to move towards a higher level of magnesium alloy processing.

When the factory's production was gradually getting back on track, the financial tsunami swept the world in 2008, and the price of magnesium metal fluctuated dramatically.

Cao Jianyong clearly remembers that in a short period of time, the price of magnesium skyrocketed from 15,000 yuan per ton to 38,000 yuan. However, after magnesium was processed into products and converted into weight, the price per ton was only 30,000 yuan. Yuan.

The fact that flour is more expensive than bread puts Cao Jianyong into a desperate situation.

Of course, the reason for the introduction of venture capital funds is that Cao Jianyong’s magnesium alloy products have been fully upgraded from motorcycle accessories to the automotive industry.

The density of steel is 7.9, the density of aluminum is 2.7, and the density of magnesium is only 1.7. Although lighter materials are not necessarily better, the simplest truth is that in some parts of the car, Lightweight materials directly reduce fuel consumption.

North American and European car manufacturers have taken the number of magnesium alloy parts used in a single car as an important indicator of technological level.

In the following years, Boao's magnesium alloy center consoles, instrument panels and steering wheels entered the global supporting system of world-famous cars such as Volvo, Ford, Mercedes-Benz and BMW.

The magnesium alloy automobile steering wheels it produces have occupied 30% of the market share of airbag cars in China.

Using magnesium alloys in daily life

While magnesium alloys are widely used in the industrial field, their application in the civilian field has just begun.

Chongqing Boao established a joint venture with Chongqing Science and Technology Research Institute, Ningxia Dongfang Tantalum Co., Ltd. and other companies to establish Chongqing Shengmei Magnesium Industry.

Shengmei’s award-winning project is the use of magnesium alloys in the production of biomedical products. Currently, the internal fixation materials used in clinical orthopedic surgeries around the world are mainly composed of stainless steel, titanium alloys, etc.

These materials are not biodegradable in the human body, and patients need to undergo a second surgery after surgery. Using magnesium alloys instead of stainless steel and titanium alloys can avoid a second surgery.

In 2015, Shengmei Magnesium Industry and Shenyang Orthopedic Hospital developed a feasibility plan for implanting magnesium alloy materials into the human body, and combined with metal 3D printing technology to trial-produce bone claws, bone nails, and bone nails suitable for the human body. Bone plates and other medical magnesium alloy material samples.

Dialogue

Chongqing Morning News: The industrialization of magnesium alloys in Chongqing has been going on for 17 years. How do you evaluate the industrialization of this new material?

Cao Jianyong: Aluminum alloy processing technology has a history of hundreds of years, while magnesium alloy processing has only been carried out in China for 20 years. Although Chongqing started from scratch, it already has hundreds of magnesium alloy patents. In 2016, Pan Fusheng, director of Chongqing Magnesium Alloy Engineering Technology Research Center, was appointed chairman of the International Magnesium Standardization Committee. All these prove that Chongqing's magnesium alloy industry is not only at the leading level in China, but also has reached the world's advanced level in some fields.

Chongqing Morning News: Is the future of the magnesium alloy industry clear?

Cao Jianyong: "Made in China 2025" takes automobile lightweighting as an important development topic, and the only way to solve the problem of lightweighting is the extensive use of magnesium alloys.

The industry predicts that the amount of magnesium alloy used in each car will be about 25 pounds in the future, which means that the annual output of magnesium alloy will quadruple in the future.

In addition, IT products such as Microsoft and Xiaomi tablets are using magnesium alloy casings in large quantities, as well as medical materials, living materials, and military materials... The magnesium alloy industry has brought good development space to the industry.

From an industrialization perspective, Chongqing’s magnesium alloy processing product chain is the most complete in the country and its processing methods are the most advanced. The goal of Boao and Sheng Magnesium is to achieve an annual output value of more than 2 billion in 2020.

Chongqing Morning News: Is there still a crisis in the development of enterprises at present?

Cao Jianyong: Although the development trend of the industry is already clear, any company may face a crisis at any time. For example, labor costs and the lack of industrial culture will bring crises to the industry.

During the development process, if risks are not well controlled, cash will also be a problem. The skyrocketing material prices and financial crisis in 2008 are the biggest warnings to us.

Picture below: Jianyong and I, Xiaoyou, he impromptuly recited Guo Xiaochuan's poem "The Toast Song"

This guy has great kung fu

Cao Jianyong in the factory The farmhouse opened in Qilinba, Wansheng Economic and Technological Development Zone, has a plaque with the title: No ties without virtue

Top photo: Cao Jianyong at the Magnesium Industry Company

Bottom photo: October 2003 Cao Jianyong took a group photo with his Chongqing classmates at the graduation ceremony of Peking University

Wen Ding/November 24, 2017/Chongqing Fortune Center