Baosteel consolidated and expanded the achievements of combating financial crisis in 2010, the last year of the "Eleventh Five-year Planning" period, maintaining the most remarkable operating performance within the industry. Baosteel achieved an annual iron output of 38,960,000 tons and an annual steel output of 44,500,000 tons, and realized gross revenue of RMB 272.984 billion and profit of RMB 24.23 billion during the whole year of 2010, fully demonstrating the strong competitiveness of Baosteel.
Baosteel signed with Fujian Wugang Group an agreement to reorganize Fujian Shengde Nickel Products Co, Ltd. on December 9. The reorganized Fujian Shengde Nickel Products Co., Ltd was renamed as Baosteel Desheng Stainless Steel Co., Ltd, with the share- holding ratios of Baosteel and Wugang Group being respectively 70% and 30%.This was another significant trans-regional reorganization move taken by Baosteel following Bayi Iron & Steel, Guangdong Steel and Ningbo Steel.
Located in the area of Luoyuanwan of Fujian,the stainless steel manufacturer Desheng Nickel Products Co., Ltd is blessed with such advantages as material cost, technology and geographic location,and it has sufficient space for expansion. The nickel alloy project with an annual output of 920,000 tons and the hot rolling stainless steel coil project with an annual output of 820,000 tons of Desheng Nickel Products Co., Ltd were completed and put into operation. The production lines of 15-40 nickel alloy with an annual output of 250,000 tons, cold rolling stainless steel with an annual output of 400,000 tons as well as hot rolling nickel alloy plate with an annual output of 2,000,000 tons are currently under preparation.
For the sake of implementing the development outline of steel industry adjustment & promotion as well as the development strategies of economic zone on the west coast of Taiwan Strait,Baosteel seized the opportunity of Fujian Shengde Nickel Products Co., Ltd to develop stainless steel industry in Luoyuanwan of Fujian by adhering to the cooperation principle of "bringing into play respective advantages of both par ties and realizing mutual benefit". On the one hand, this move enabled Baosteel to actively get involved in the construction of economic zone on the west coast of Taiwan Strait while on the other hand,Baosteel, as "motivator of green industry", would integrate sources in an appropriate and intensive manner, increase input into energy-saving and environment-friendly facilities and promote harmony between the development of stainless steel industry in Luoyuanwan of and the local ecological environment.
Phase II Relocation Project (Luojing Plot) of Pudong Iron & Steel
The relocation project of Pudong Iron & Steel Co, Ltd. phase II (Luojing plot) is oriented in production of steel products for shipbuilding,bridges, abrasion-resistant steel, extra-high tensile steel for engineering machinery, extra-high tensile steel plate for container, corrosion resisting steel plate, steel plate for ocean platform, steel plate for military use and so on that meet the market demands of numerous industries including shipping,petroleum, chemical, electricity, bridge and machine manufacture. COREX technology replaces traditional blast furnace in producing molten iron during iron making process. A reaction of molten iron with coal occurs and melting reduction is realized through combustion-supporting high purity oxygen,cutting down significantly the usage of coking coal in short supply, canceling two major processes of "sintering" and "coking", and fully satisfying the requirements of cleaner production. Heat value gas which is one of the by-products of COREX iron making is used for CCPP power generation,realizing comprehensive recycling of energy COREX - CCPP - oxygen making - COREX;Meanwhile, complementary energy, waste heat and solid wastes are also utilized in a highly efficient and comprehensive manner. This project further promotes environmental protection and cleaner production of Chinese iron & steel industry.
Stainless Steel Cold Rolling Follow-up Project
Stainless steel cold rolling follow-up project consists of two units - stainless steel and carbon steel. The stainless steel unit focuses upon developing the brand of "Baosteel Stainless", adheres to orientation of user demand, enhances competitiveness of products while at the same time actively popularizes environment-friendly products,conveys to users the concept of energy conservation and sustainable development, guides users to use such means as technical support and enables users to get adapted to and be familiar with green products more quickly, thus realizing cyclic development of society. The new products of this unit mainly include: high-end group represented by antibacterial series products, recyclable steel for architecture and steel for solar energy.
The unit of carbon steel is mainly engaged in the production of common cold rolled as well as hot galvanizing products such as auto sheets and steel sheets for home electrical appliances which are in urgent need in China. The unit of carbon steel adopts an open and integrated innovation method which is mainly completed by Baosteel.Various links of unit construction from preliminary design, equipment manufacture to commissioning throughout the line and hot & cold operation across various disciplines from technology, machinery to electricity, instrument and computer are all completed by Baosteel independently, realizing breakthroughs from unit capacity expansion to variety and quality.
Adjustment & Reforming Project of Cold Rolling Type Structure of Baosteel-NSC Automotive Steel Sheets Co., Ltd.
Based on the accumulated experiences for many years in auto sheet manufacture of Baosteel,the cold rolling product structure adjustment project of Baosteel-NSC Automotive Steel Sheets Co.,Ltd. has established a production line of alloying hot galvanizing hot rolling auto sheet that ranks the most advanced level in China and the international leading level, further optimizing cold rolling product structure of Baosteel and remarkably promoting production capacity of auto sheet which features high surface quality, high mechanical property,high dimensional precision and high added value.The alloying hot galvanizing hot rolling auto sheet manufactured by this production line is characterized by excellent corrosion-resistance, formability,weldability and paintability and it possesses high strength steel production capacity, fully achieving "replacing imported products with self-production" and can satisfy the material localization and weight-reduction & energy-saving requirements of materials for Chinese automobile manufacture.
Special Metal and Alloy Steel Plate & Strip Project of Special Steel Division
Based on its abundant experience in special steel production for many years, Baosteel established a complete production line of special metal and alloy steel plate & strip from smelting to rolling which is the only one in China and features international top-class level. Special Metal and Alloy Steel Plate & Strip Project targets at such products as titanium alloy, nickel base alloy, stainless and special stainless steel plate coil that are in short supply. Products are oriented in super alloy such as titanium & titanium alloy, nickel base heat resistant alloy, nickel base corrosion resistant alloy,and precision alloy, as well as plate & strip products such as special stainless steel, tool-die steel,alloy constructional steel, abrasion resistant, heat resistant as well as low magnetic products, capable of manufacturing special steel materials that meet the requirements of key areas including national defense and energy and feature advanced cold working extensibility.
Bayi Iron & Steel New Area Project of Bar Production Line
Bayi Iron & Steel New Bar Production Line Project consists of one bar production line with an annual output of 600 thousand tons and one high speed wire rod production line with an annual output of 600 thousand tons, with a total investment of RMB 560 million. For the new high speed wire rod production line project, the construction was started on May 20th, 2008 and linkage trial run implemented on July 14th, 2009, with the total construction period being 13 months; for the new bar production line project, the construction was started on May 28th, 2009 and the linkage trial run implemented on March 22nd, 2010, with the total construction period being 10 months. The project is contracted by Beijing MCC Equipment Research & Design Corporation Ltd.
Ever since the approval by National Development and Reform Commission of preliminary work of Zhanjiang Steel Base Project in March 2008, the construction headquarters of Baosteel-Zhanjiang Project has been continuously carrying forward various preparation work of preliminary phase of project. By the end of 2010, feasibility study of this project had come to an end; land acquisition and relocation work within the red line of the main plant area on site had been completely finished; projects like ground leveling, temporary water for construction, electricity, road engineering,drainage channel and so on had been basically completed or simultaneously under construction.Currently, all preliminary work has been advancing as planned.
Innovation System Construction
Corporation has fully initiated system construction and optimization work of technological innovation, launching 10 schemes of system optimization & perfection in 10 aspects including R&D system construction, utilization of technology policy, talent encouragement,strategic cooperation of production, study and research and so on; meanwhile, with a view to enhancing technology popularization within the Group, Opinions on Technology Popularization Mechanism has been released, specifying mechanism and requirements of technology popularization in terms of four aspects including unified planning, technology sharing,cooperative support and support of key areas.
Main Innovation Achievements
Adhering to the strategy of technology leadership and carrying out continuous innovation of high-end products and R&D of core technology. Auto sheet R&D has made breakthrough again and the success of the third generation advanced high-tensile steel (Q&P) enabled Baosteel to become the first enterprise to have trial production around the world and the construction of "The State Key Laboratory of Automobile Steel Development & Application Technology" by Baosteel has been approved by the State; It supplies steadily Three Gorges Dam Project with high magnetic induction silicon steel for large scale transformer in bulk. Thin strip continuous casting unit realizes whole furnace casting and coiling. The construction of Ningbo steel industrialized production line with an output of 500 thousand tons has been started.
Diverse industries improve constantly innovation capacity and attach high importance to fosteringsignificant proprietary technologies. Coal series needle coke industrialized production line has achieved technology connectivity and produced qualified needle coke products; the first autonomously integrated large scale continuous annealing unit and ladle refining furnace of 300 tons (Hyundai Corporation) have been put into operation smoothly; 100 thousand pieces of hydro formed components and parts have been supplied stably and the development of hot stamping die has achieved breakthrough. Corporation has taken the lead in mastering hot stamping die technology of front & rear bumpers as well as components like automotive door impact beam in China.
Technology Exchange and Popularization
Targeting at the market demand of Bayi Iron & Steel and in combination with its production line capacity, Baosteel Co., Ltd.,with product transplanting & development as the principal line,consolidated process control, improved quality management and transplanted & developed a total of 25 marks of products in 2010,forming capacity of producing key products in batches. Concentrating on starting instructions of the new project of Ningbo Steel and assisting Ningbo Steel in realizing successful operation of 1# coke oven, slag treatment project and slab spray marking machine.In accordance with the technology supporting requirements of Shaoguan Iron and Steel Group Co., Ltd., Baosteel planned systematically and organized the implementation of exchange and investigation of various aspects including production, manufacture,equipment, procurement, energy, project management and so on.
In line with demands of steel enterprises both at home and abroad, Baosteel Co., Ltd. output a series of energy-conservation & environment-protection as well as quality control technologies related to sintering desulphurization, comprehensive use of used refractor y materials, control model of slab continuous casting,opening or hole inspection and so on, realizing new trade growth points. By virtue of the engineering platform of Baosteel Group,Baosteel output related technology services matching complete sets of units such as slag treatment, RH refining, spray marking' machine, full hydrogen bell type annealing furnace.
Baosteel established the middle phase boosting scheme of strategic cooperation among enterprises, universities and research institutions centering upon the main line of "project promotion,problem coordination and plan arrangement", gave full scope to synergy and integration of scientific research and production in terms of function and resources, reinforced and propelled guide.projects of cooperation among enterprises, universities and research institutions. The international science and technology cooperation management mechanism of "demand driven, project linkage and unified management" has been further intensified and the international science and technology project cooperation with three blocks overseas have been boosted.
Baosteel Group Corporation participated in dozens of important academic exchanges both at home and abroad and held many conferences such as Baosteel BAC 2010, China Stainless Steel Annual Conference, and National Titanium & Titanium Alloy Academic Conference.
Baosteel Co., Ltd. stood out from numerous large and reputed enterprises to become the project partner of UNEP. Baosteel Co.,Ltd. cooperated with UNEP in research and practice of green procurement,and formed "Maturity Degree Model and Self-Assessment Framework for Sustainable Development of SMEs" with product lifecycle management process of supplier as a characteristic element,enhancing systematic management level of Baosteel supply chain and at the same time facilitating fast and highly efficient transition of SMEs to sustainable development.
In 2010, Baosteel Co., Ltd. actively got engaged in the testing of GHG Protocol which was developed jointly by World Resource Institute (WRI) and World Business Council for Sustainable Development (WBCSD) and provided such discharge methodology as involved in the entire lifecycle of one single product and in the entire value chain of an enterprise, and proposed related suggestions. This work signifies that Chinese enterprises no longer accept passively carbon criteria of foreign countries but instead get involved in the formulation of criteria.