Liu Ziran, Deputy General Manager Zhaoqing Hongwang Metal Industry Co Ltd,China. New cold rolling project updates and market outlook
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1 Liu Ziran, Deputy General Manager Zhaoqing Hongwang Metal Industry Co Ltd,China New cold rolling project updates and market outlook
2 1 CONTENT Introduction of Hongwang Group and Progress of the New Cold Rolling Project 2 Innovation and Upgrading: Hongwang s Five- Stand Tandem Cold Rolling Mill Leading the New Wave of Stainless Steel Development 3 Market Development: The Dawn of the E-Commerce Era Dominated by Steel Mill
3 1 Development of Hongwang Group in Stainless Steel Cold Rolling Field
4 1 Development of the New Project of Hongwang Group in Stainless Steel Cold Rolling New Project Equipment Steel Specs (mm) SOP Time Capacity Zhaoqing HongWang 18-high five-stand tandem cold rolling mill 201/304 ( ) * ,000 tons/year Fujian HongWang Hot pickling tandem cold rolling mill 20-high single cold rolling mill 201/304 ( ) * million tons/year ShanDong HongWang 850mm six-stand tandem cold rolling mill 18-high five-stand tandem cold rolling mill 201/304 ( ) *800 ( ) * ,000 tons/year 600,000 tons/year By 2016, Hongwang Group is expected to go into full operation and to produce 2.5 million tons/year of cold-rolled stainless steel sheet.
5 1 In 2014, Zhaoqing Hongwang subsidiary produced 400 kt stainless steel through the five-stand tandem cold rolling mill. Hongwang brand has been awarded the honorable title of China s Well-Known Trademark and our products have been well sold at home and abroad for the excellent product quality, full service, innovative marketing concept of our company.
6 1 Fujian Hongwang subsidiary s equipment of five-stand tandem cold rolling mill is being installed, and is expected to go into operation in Aug Main production lines: one three-stand tandem cold rolling mill and continuous hot pickling line, two 20-high single cold rolling mills, one continuous cold pickling line and surface deep-processing unit.
7 1 Shandong Hongwang subsidiary has started construction. Project Phase I is expected to go into operation in Oct Project Phase I: one 850mm six-stand tandem cold rolling mill, one 850mm continuous cold pickling line. Project Phase II: one 18-high five-stand tandem cold rolling mill, two continuous cold pickling lines and surface deep-processing unit.
8 2 Innovation and Upgrading: Hongwang s Five-Stand Tandem Cold Rolling Mill Leading the New Wave of Stainless Steel Development Traditional reversible cold rolling mill: Low efficiency, high cost, high energy consumption 18-high five-stand tandem cold rolling mill: High efficiency, low cost, low energy consumption
9 2 Innovation and Upgrading: Hongwang s Five-Stand Tandem Cold Rolling Mill Leading the New Wave of Stainless Steel Development Characteristic 1: High level of automation, headless continuous rolling and online variable gauge production result in great improvement in rolling yield and production efficiency, achieving mass production and customized hybrid production.
10 2 Innovation and Upgrading: Hongwang s Five-Stand Tandem Cold Rolling Mill Leading the New Wave of Stainless Steel Development Characteristic 2: The18-high five-stand tandem cold rolling mill is high in rigidity, small in working roll and high pressure for each stand. It becomes possible to roll high strength stainless steel into thinner sheet by the five stands.
11 2 Innovation and Upgrading: Hongwang s Five-Stand Tandem Cold Rolling Mill Leading the New Wave of Stainless Steel Development Characteristic 3:With its intermediate roll shifting and bending roll functions, the 18-high tandem cold rolling mill can adapt to different raw material width and adjust plate shape online.
12 2 Innovation and Upgrading: Hongwang s Five-Stand Tandem Cold Rolling Mill Leading the New Wave of Stainless Steel Development Characteristic 4: Each stand with different rolling technology can well control the sheet surface quality and the thickness accuracy, to produce thinner sheet through high-speed rolling, to achieve high efficiency and low energy consumption.
13 3 Market Development: The Dawn of the E-Commerce Era Dominated by Steel Mill Current situation of steel E-Commerce platform In China, there are more than 100 E-Commerce platforms for steel trade, but few of them is under direct control of steel mills. They are just E-Commerce platforms controlled by internet companies for on-line trading. The E-Commerce platforms without industry support can t guarantee customers benefits in the process of steel production, processing, logistics, storage and trading, neither for technical service and after-sale service, which results in inefficient development of end customer base. That s also the reason why there are many E-Commerce platforms, but no big players.
14 3 Market Development: The Dawn of the E-Commerce Era Dominated by Steel Mill Disadvantages of steel E-Commerce platforms created by internet company: Lack of product resources Low credibility Poor product after-sale service No personalized customization Incapable of integrating upstream and downstream channels Difficulties in processing and distribution
15 3 Market Development: The Dawn of the E-Commerce Era Dominated by Steel Mill Advantages of E-Commerce directly controlled by steel mills Strong capability of integrating industry and resource chain Personalized customization Providing one-stop service and overall solution Stable delivery date and excellent quality Without limits from middlemen Strong supply capacity under regional allocation of industry chains Co-creation and sharing benefits with end customers
16 3 Market Development: The Dawn of the E-Commerce Era Dominated by Steel Mill Hongwang Group s regional allocation strategy is the foundation of E-Commerce Platform
17 3 Market Development: The Dawn of the E-Commerce Era Dominated by Steel Mill New growth point: Stainless steel industry entities +Internet +Internet of Things +Financial capital
18 3 Achieving personalized customization, fast and efficient, share and win-win Steel Mills E-Commerce End Customer Finance Integration Channel Integration Processing & Distribution
19 3 Integration of platform, automation of handing, simplification of marketing PC: APP: 2015/6/8
20 Summary Cold rolled stainless steel: According to China s new capacity data in 2014, the capacity growth rate slowed down. The industry is dominated by integration and tandem cold rolling process. Even in the market downturn with falling price, Hongwang s tandem cold rolling products are still well received by customers and in short supply, for its good quality and competitive price.
21 Summary Chinese Market: In the increasingly competitive market environment, the tiny profit development has been spread in the entire industry chain. Cold rolling, the forefront of stainless steel industry, occupies a foremost position. The life and death of an enterprise depend on the distribution of industry chain, production cost, production quality, service ability, business model and environment protection level. The only way for survival is to face difficulties, to adjust, to transform, to develop and to innovate. The E-Commerce era combining stainless steel mill and internet is coming, which provides one-stop service platform for end customers with higher efficiency, more convenience and transparent sharing. Hongwang group s disadvantages have been recognized. We will follow the industry development trend, eliminate backward production lines, innovate technology and process, introduce new operation principle and business model. We will transform and upgrade unswervingly, moving forward in continuous changes. The combination of E-Commerce and steel mill will help the big player getting bigger, accelerate the transformation of production chain and achieve sustainable development of steel industry.
22 As an old Chinese saying: Any circumstance hitting a limit will begin to change. Change will in turn lead to an unimpeded state, and then lead to continuity.
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