Xu Lejiang Makes Keynote Speech at CISA

CISA new president Xu Lejiang makes presentations at 2013 director (enlarged) meeting -  transformation and upgrading in the pursuit of quality and efficiency

On January 5, China Iron and Steel Association 2013 director (enlarged) meeting is held in Beijing. CISA's new rotating chairman, Baosteel Group Corporation chairman Xu Lejiang, in connection with actual steel industry situation, especially the current market environment faced by steel industry and development prospects, combined with learnings from 18th Party Congress spirit and the spirit of the Central Economic Work Conference, makes "promote iron and steel industry development and transformation" special speech.

For the iron and steel enterprise's grim market situation and development prospects, Xu Lejiang points out that although iron and steel industry is in severe conditions and faced with unprecedented difficulties, this is an inevitable process to go through in the process of development for the industry. China's iron and steel industry has a long way to go in future, just the walk method is different from today. We must be confident. There is a big gap between China's urbanization rate and that of the developed countries. To achieve the great rejuvenation of the Chinese nation and the "two hundred years" goal, the demand for steel will be an ongoing process. So we still have reason to believe that there is great potential in the development of China's iron and steel industry. At the same time, China's iron and steel industry needs to effectively change the development mode, transform and upgrade from the pursuit of quantity and scale to the pursuit of quality and efficiency. The key to achieve this transformation and upgrading is that steel industry must shift from investment-driven to innovation-driven development. In future, China's socialist market economy development direction is firm. We should see that innovation is an essential feature of the market economy. Without innovation, some iron and steel enterprises will be be eliminated in the market competition in future. Innovation-driven includes not only technology innovation. For steel industry, in future we should pay more emphasis on business model innovation, management and institutional innovation. For state-owned steel enterprises, institutional mechanism innovation is hard and has a long way to go.

Xu Lejiang stresses in his speech that 2012 Central Economic Work Conference raises resolving excess capacity trouble as the focus of industrial structure adjustment work. As to how to resolve the problem of excess production capacity, Central Economic Work Conference raises "4 batches": consuming one batch by creation and expansion of domestic demand, transfering one batch to overseas by speeding up going out process; integrating one batch by optimization of organizational structure; eliminating one batch by rigorizing environmental security energy consumption admittance standards. As for steel industry specifically, in resolving steel overcapacity contradiction we must respect the laws of market, rely on market-based instruments and eliminate a number of capacity through market competition. Although at first there will be loss of some resources in this process, it can't be avoided, iron and steel enterprises must work hard. We should also go out actively and transfer industrial chain; actively promote the merger and reorganization of steel industry, improve the variety and quality of products and enhance market competitiveness and viability.

18th Party Congress report highlights ecological civilization. Xu Lejiang points out that the development of China's iron and steel industry makes us feel that the survival and development of the iron and steel enterprises are faced with more and more pressure. Everyone of us hope that we can have a good environment, fresh air, clean water. How to promote steel industry green development, circular development and low-carbon development is a major challenge facing the steel industry. Even in the case of the current steel production technology's huge leap, steel production process still has large impact on resources and the environment and is typical high-load industry. If steel industry is to be the model of China's ecological civilization construction, it must go low energy consumption, low pollution, low-emission, high environmental protection, comprehensive, coordinated and sustainable development road. Through technological innovation and industrial upgrading, it must promote the comprehensive development of  green economy, low-carbon economy and circular economy.

As for CISA's work in the new year, Xu Lejiang says that under the joint efforts of CISA successive leadership, a lot of the association's basic work has been put into orbit and plays an active role in the development of the industry. In next step, CISA will actively carry out research, understand the common demands of enterprises and reflect common problems to state authorities; work with the relevant state departments and do survey and organizational work, make efforts to establish a fair and equitable market environment and provide members with better service. The development of the steel industry has reached the tough period, the association's development will also reach a new level. In 2013, we will focus on steel quality and efficiency improvement, make progress while maintaining stability, innovate and further our work well; strengthen innovation-driven force, strengthen and improve internal management, increase strategic restructuring efforts, enhance industry development vitality and momentum and jointly promote the healthy and sustainable development of China's iron and steel industry.