Hainan Steel Wholesale
1、 Liugang refers to that steel
When it comes to Liuzhou Iron and Steel, it is important to distinguish which one it is. Common examples of Liuzhou Iron and Steel include Liuzhou Iron and Steel Co., Ltd., Liuzhou Iron and Steel Group Co., Ltd., and Guangxi Iron and Steel Group Co., Ltd.
Guangxi Liuzhou Iron and Steel Group Co., Ltd. was established in 1958, located in the golden location of the Pan Pearl River Delta, Southwest China, Beibu Gulf, and ASEAN Economic Circle in China. It is one of the top 50 steel enterprises in the world, one of China's top 500 enterprises, and a super large steel joint enterprise in China. Received an A+(extremely strong) rating for the competitiveness and development quality of Chinese steel enterprises in 2023. The tube is called Liugang Group.
Liuzhou Iron and Steel Co., Ltd. is a joint-stock company established on April 14, 2000, in accordance with relevant laws and regulations such as the Company Law of the People's Republic of China, and with the approval of Guangxi Zhuang Autonomous Region People's Government's Guizheng Letter [2000] No. 74, jointly initiated by Guangxi Liuzhou Iron and Steel (Group) Co., Ltd., Liuzhou Nonferrous Smelting Co., Ltd., Liuzhou Chemical Industry Group Co., Ltd., Guangxi Zhuang Autonomous Region Metallurgical Construction Company, and Liuzhou Liugong Materials Co., Ltd. The total net assets invested by the five initiators and shareholders were RMB 310.19846 million, which was converted into shares at a 65% ratio, equivalent to 201.629 million shares. When the company was established, it was named Guangxi Liuzhou Jincheng Co., Ltd. In October 2001, the company name was changed from Guangxi Liuzhou Jincheng Co., Ltd. to Liuzhou Iron and Steel Co., Ltd. Abbreviated as Liugang Co., Ltd.
Guangxi Iron and Steel Group Co., Ltd. is the owner of the Fangchenggang Steel Base project. The company's investors are Wuhan Iron and Steel (Group) Company and Guangxi State owned Assets Supervision and Administration Commission, with Wuhan Iron and Steel contributing 80% of the shares in cash; Guangxi State owned Assets Supervision and Administration Commission contributes 20% of the total net assets of Liugang Group. The initial registered capital of the company is RMB 44 billion. But due to unforeseen circumstances, Wuhan Iron and Steel Group withdrew and took over. According to Aiqicha, Liuzhou Iron and Steel Group Co., Ltd. contributed 11 million yuan, accounting for 45.83333% of the shares. Liuzhou Iron and Steel Group Co., Ltd. contributed 10938 million yuan, accounting for 45.575% of the shares. Wuhan Iron and Steel Group Co., Ltd. contributed 20.6 million yuan, accounting for 8.59167% of the shares. Abbreviated as Guangzhou Iron and Steel Group.
What we usually refer to as Liugang is Liugang Group Co., Ltd.
2、 Why did Liugang settle in Liuzhou?
When it comes to Liugang, many people think of the Nanning Conference.
According to historical records, from January 11th to 22nd, 1958, the ' Nanning Conference ' of the Central Committee of the Communist Party of China was held, with some central and local leaders participating. The conference summarized the first five-year plan and discussed the second five-year plan and long-term planning.
The construction of Liugang is an important achievement of this conference.
In the book ' Mao Zedong and Guangxi ' , there is a passage that goes: ' Mao Zedong arrived in Nanning and deeply felt the backwardness of Guangxi's industry... Mao Zedong not only verbally agreed to the three key projects proposed by the Guangxi Provincial Party Committee to build Liuzhou Iron and Steel Plant, Xijin Hydropower Station, and Liuzhou Fertilizer Plant, but also instructed Vice Premier Li Fuchun to specifically assist Guangxi in planning and arranging relevant construction projects. '
In addition to this conference, the National Local Metallurgical Work Conference held in July 1957 was also crucial. On that day, the meeting approved the construction of a small-scale steel plant in Guangxi with an annual output of 100000 tons of steel, becoming one of the 18 local steel enterprises in the layout of the ' One Large, Two Middle, and Eighteen Small ' steel industry.
According to the information available at that time, the Tunqiu Iron Mine in the northeast of Liuzhou has the largest storage capacity (over 50 million tons), and the manganese ore production areas are distributed near Liuzhou (with abundant manganese ore near Laibin). From the supply of raw materials such as coking coal and the transportation of products, it is also required that the factory site be close to the railway line. Liuzhou City was the transportation hub in the southwest at that time, with convenient water and land transportation and a good industrial foundation. After repeated discussions and research, the Guangxi Provincial Party Committee decided to locate the steel plant in Liuzhou at that time.
3、 The Development History of Liugang
In 1958, with the free assistance of various forces, the construction climax of vigorous and arduous entrepreneurship began at the foot of Que'er Mountain in the northern suburbs of Liuzhou City, southern Xinjiang, China.
On February 18, 1960, the No.1 blast furnace of Liugang was completed and produced the first batch of molten iron. Due to various reasons, Liugang has gone through a tortuous process of shutdown, resumption of production, and further shutdown and resumption of production. It was not until 1980 that the factory ended its 20-year history of continuous losses, with ups and downs and hardships. On the road of entrepreneurship, the people of Liugang have a steel dream of becoming bigger and stronger, fearless of difficulties, and have risen to the challenge, leaving solid and shining footprints.
The spring breeze of reform and opening up has injected new vitality into Liugang, and the enterprise has gradually embarked on a path of rolling development and a virtuous cycle. In 1999, the annual production of Liuzhou Iron and Steel, steel, and materials reached a new historical level of 1 million tons. In 2010, Liugang's annual steel production exceeded the 10 million ton mark for the first time, officially entering the ranks of millions of ton steel enterprises, fulfilling the ' steel dream ' of several generations of Liugang people.
In 2018, on the 60th anniversary of the establishment of Liugang, Liugang achieved impressive results with annual iron and steel production exceeding 12 million tons and 13 million tons respectively, operating revenue of 88.8 billion yuan and net profit of 10.3 billion yuan. The company ranked among the top five in the steel industry in terms of profit, surpassing the total profit of Liugang in the first 58 years, and becoming the first state-owned enterprise in Guangxi with an annual profit exceeding 10 billion yuan.
4、 Why did Liugang establish Guangxi Iron and Steel Group Co., Ltd. in Fangchenggang
Setting up steel plants along the coast is nothing more than a reason for raw materials and markets:
（1） Due to the inversion of ore grade and cost, domestic iron ore resources have gradually lost their competitive advantage, and the iron ore used in the steel industry now relies mainly on foreign imports. The import of iron ore from abroad generally relies on sea transportation, and the iron ore ship has a relatively large hull, which must have a deep-water dock shoreline. If it can be transported directly from the sea to the factory by belt conveyor, the cost will be greatly reduced. Taking Liugang as an example, the cost of transporting iron ore from outside the province to Fangchenggang is reduced by 3 to 400 yuan per ton compared to Liuzhou. Calculated based on a production capacity of 10 million tons, cost savings of 3 to 4 billion yuan per year can be achieved. In other words, the logistics savings alone bring a profit of 34 billion yuan to the enterprise, and the investment in the steel plant can be recovered in just five years.
（2） At present, the main steel markets in South China are in the Pearl River Delta and the Beibu Gulf region, and Southeast Asia is also an area in urgent need of steel. Fangcheng Port is located at the center of the market. It was a gateway from the Central Plains to Southeast Asia a thousand years ago, and now it is the only coastal and border port city in China. Not only is its geographical location unique, with comprehensive policy incentives, strong logistics support, and low cost of product transportation to the market. It can not only radiate to surrounding areas, but also be transported along the ' Maritime Silk Road ' to Southeast Asian countries, exploring foreign markets, and has huge market potential.
The Fangchenggang Steel Base project of Liugang Group was approved by the National Development and Reform Commission in May 2012, with an annual production capacity of 9.2 million tons of steel. This project is an important strategic layout for the structural adjustment of the national steel industry, and is a major project in promoting the overall layout of ' one core, three belts, and nine bases ' for secondary entrepreneurship in Guangxi's metallurgical industry. It undertakes the important task of Guangxi's metal materials industry moving towards the mid to high end; It is also a key layout for Liugang Group to vigorously implement the coastal strategy and build a new version of the ' One Body, Two Wings ' development map.
In order to accelerate project construction, the autonomous region and Wuhan Iron and Steel Group actively discussed matters related to project construction led by Guangxi. In October 2016, the two sides signed a meeting minutes and framework agreement, and restructured Guangxi Iron and Steel Group, which is controlled by Liugang Group and serves as the main implementer of the Fangchenggang Steel Base project.
In February 2018, Liugang Group and Wuhan Iron and Steel Group signed an agreement to restructure the project company - Guangxi Iron and Steel Group Co., Ltd; In June 2018, the restructuring agreement was officially approved by the Guangxi State owned Assets Supervision and Administration Commission and the State owned Assets Supervision and Administration Commission of the State Council, and came into effect; In July 2018, Liugang Group fully took over the construction of the Fangchenggang Steel Base project.
After taking over the project, Liugang Group optimized and adjusted the project plan, with a total planned investment of 45 billion yuan, to build a full process steel boutique production base. Our products include cold-rolled sheets, hot-dip galvanized coils, hot-rolled broadband steel, high-strength threaded steel, alloy steel bars, high-quality wire rods, etc., meeting the demand for mid to high end steel products in markets such as Guangdong, Guangxi, Hainan, Southwest China, and Southeast Asia, especially in the automotive, home appliances, construction, machinery, shipbuilding, and energy industries.
After writing so much, it can be simply put:the Liugang Fangchenggang project was initially a joint venture with Wuhan Iron and Steel Group, and later Wuhan Iron and Steel Group withdrew and Liugang took over.