Iron and steel metallurgy design Institute how to develop in high quality?



New connotation

The 19th National Congress of the Communist Party of China pointed out that China's economy has shifted from a stage of high-speed growth to a stage of high-quality development. Under the guidance of high-quality economic development goals, China urgently needs to change the past "demographic dividend as a competitive advantage", "factor input, resource consumption, environmental pollution", "by foreign advanced technology and resources" and other development methods. Iron and steel metallurgy industry as an important basic industry of the national economy, high-quality development is an important indicator of its transformation and development in the "14th Five-Year Plan" period. In December 2020, the Ministry of Industry and Information Technology issued the Guiding Opinions on Promoting the High-quality Development of the Steel Industry (Draft for Comment), proposing that by 2025, the steel industry will basically form a development pattern of reasonable industrial layout, advanced technology and equipment, prominent quality brands, high intelligence level, strong global competitiveness, green, low-carbon and sustainable development.

Iron and steel metallurgy industry will unswervingly "innovation, coordination, green, open, sharing" the new development concept throughout the whole process of development, in the in-depth implementation of manufacturing power strategy and strategic emerging industries innovation-driven development requirements, strengthen the "neck technology" research and development investment, vigorously enhance the independent innovation ability, "made in China" into "China made"; Under the guidance of integrating carbon peaking and carbon neutrality into the overall layout of ecological civilization construction, we will strive to promote the green transformation of production and life styles and the upgrading of ecological environment quality. In the important consensus of "internal and external cycles promoting each other", grasp the release of endogenous potential in the internal cycle and "double cycle", promote the domestic large cycle of "supply and demand matching" more recognized by the industry, at the same time, in the process of resisting external uncertainties and adverse factors, by accelerating the creation of new international cooperation and competitive advantages, to "international standards" performance and delivery. Improve the efficiency and level of domestic large circulation, and share the development results of China's steel industry with the world.

New policy

Qualification reform

Qualification reform is continuing. Under the main tone of "streamlining administration and delegating power", the qualification reform further promotes the cross-border integration of enterprises and the reform and innovation of the engineering construction organization model, and the general contracting and the whole process of engineering consulting will achieve accelerated development during the "14th Five-Year Plan" period. In this context, the transformation from products to services, through the digital technology innovation service model and the in-depth integration of capital development, will become an important starting point for industry enterprises to enhance their comprehensive competitiveness during the "14th Five-Year Plan" period. By analyzing the impact of trends such as cross-border integration, business model innovation, and resource capacity agglomeration, attaching importance to the capacity construction of planning and consulting guidance, fine project management, industrial chain integration and coordination, and ecological partners' win-win, it will become the core competitive factors of industry enterprises.

State-owned enterprise reform

During the "14th Five-Year Plan" period, the reform of state-owned enterprises continued to advance to the "deep water area", and the "three-year Action on State-owned Enterprise Reform (2020-2022)" was an important measure to implement the top-level design and policy system of the "1+N" reform of state-owned enterprises.

At present, the hot spots of SOE reform actions mainly focus on five aspects: property rights, corporate governance, market-oriented operation mechanism, management ability and supervision mechanism. Among them, it emphasizes the reform of equity diversification and mixed ownership, requires the formulation of the list of pre-management matters of the Party committee (Party group), the implementation of the functions and powers of the board of directors, the comprehensive establishment of a management system in which the Board of Directors authorizes the management level, the improvement of the market-oriented salary distribution mechanism, the encouragement of flexible medium - and long-term incentives in various ways, and the implementation of key measures such as benchmarking the management improvement of world-class enterprises. We will further form a state assets supervision system focusing on capital management and promote fair participation of state-owned enterprises in market competition.

New technology

Under the national innovation-driven development strategy layout, scientific and technological innovation has become the key driving force for the steel industry to achieve the high-quality development goal of "green, efficient, low-carbon and intelligent".

In terms of optimizing energy use and process structure, the development of short-process EAF steelmaking is encouraged, and the recycling and utilization of scrap steel resources are increased, so as to improve the production efficiency of EAF short-process steelmaking and increase the scrap ratio of converter.

In terms of building a circular economy industry chain, build an energy industry chain with steel production as the core, encourage the implementation of tempering cogeneration, cogeneration, and create a circular economy industry chain between steel, coking, and electric power.

In the application of breakthrough low-carbon technologies, actively promote the substitution of clean energy and realize multi-energy complementarization; Through hydrogen smelting, electrolytic reduction, oxygen blast furnace and non-blast furnace smelting, biomass energy utilization, etc., the deep decarbonization approach is constructed.

In terms of building a digital intelligent system, grasp the "Internet +" model, and carry out the construction of a four-level information system of "basic automation + production process control + manufacturing execution + enterprise management" to achieve "intelligent manufacturing process"; Integrate the whole process information of "user demand, research and development, production, sales, service", build the Internet platform of resource ecosystem, and realize "intelligent production services".

New ecology

In 2020, China's crude steel production exceeded the 1 billion tons mark, hitting a record high. In order to further promote supply-side structural reform, resolve excess capacity, and achieve high-quality development, the steel industry is increasing merger and reorganization efforts. For example, China Baowu Iron and Steel Group Co., LTD., formed by the joint reorganization of Baosteel and WisCO, has become an aircraft carrier enterprise with a scale of 100 million tons through the reorganization of iron and steel enterprises such as Masteel, Heavy Steel, TiSCO, Kungang, Shan Steel, Ruitai Technology and Sinosteel International, and the merger of well-known research institutions such as Metallurgical Information Standards Research Institute.

It can be predicted that in the future, the steel industry will continue to enrich the industrial chain and the construction of the ecosystem, and continue to improve industrial concentration. On the one hand, mergers and reorganizations have accelerated supply-side structural reform; On the other hand, it also brings a new ecology of iron and steel industry, which brings challenges to the traditional market and business model of iron and steel metallurgy design institutes.

Iron and steel metallurgy design Institute "fourteen five" development ideas

Layout of multiple services

The iron and steel industry has obvious cyclical fluctuations, and upstream and downstream enterprises are greatly affected by the "butterfly benefit" brought by the supply and demand situation of the industry. In this context, to explore the direction and strategic measures of "making the main industry of iron and steel stronger, extending the innovation and development of the business" is an important consideration for the iron and steel metallurgy design institute to plan the "14th Five-Year Plan" strategy.

Taking an iron and steel metallurgy design institute as an example, it focuses on three strategic sectors: iron and steel engineering, urban infrastructure construction, energy and environmental protection. In 2020, the revenue of the institute's steel engineering sector accounted for 51%, and the revenue of the urban infrastructure construction sector and the energy and environmental protection sector accounted for 49%, which better achieved balanced development, and established a representative practice sample of development transformation in the industry, forming a wide influence.

Whether it is "multi-wing" development or "diversified" development strategy, "entering the city" is the inevitable choice for most survey and design enterprises during the "14th Five-Year Plan" period. Under the guidance of fixed asset investment from the previous strong stimulus of "flood irrigation" to "make up for weaknesses and benefit people's lives" precision drip irrigation, the core focus of iron and steel metallurgy industrial design Institute entering the field of urban construction should focus on the subdivision of urban construction, such as urban renewal, medical care, tailings treatment (underground space), sponge city, smart municipal, etc. Avoid entering the traditional advantageous business areas of architectural and municipal design institutes.

In addition, grasping the opportunity of carbon peak and carbon neutral development, extending from industrial environmental protection to urban environmental protection is also an important direction for Iron and Steel Metallurgy Design Institute to achieve "multi-leg walking", such as water treatment, solid waste treatment, air pollution prevention and control, etc., will be an important direction of future business layout.

Bridging the value chain

Integration of design and construction. Iron and steel metallurgy design Institute generally has a good steel project general contracting capacity. As the main link carrying the "leading" advantage of design, iron and steel metallurgy design Institute should pay more attention to the leading role of design consultation in the whole industrial chain, make full use of the institute's ability to formulate plans, optimize plans and control costs through technical language, and effectively guide the needs of owners. Give full play to the advantages of integrated design and construction. Taking a certain iron and steel metallurgy design Institute as an example, through the implementation of strategic restructuring, it has established a business system integrating design and construction in the field of metallurgical engineering, taking "service value" as a breakthrough, providing customers and industrial chain partners with design services with fewer changes, fast speed, optimization in place and timely response, and extending design planning and services to the construction link. Establish a design-led project cost, duration and quality perspective, open up the internal relationship of EPC links, provide customers with perceived value services, and thus win customers' favor.

Productization of technology. The scientific research achievements and invention patents form a closed loop within the enterprise, and while protecting intellectual property rights, the enterprise is transformed from a simple "drawing" design party to a "drawing - production equipment - service" technical equipment supplier, thus extending the service chain, increasing value viscosity, and building business growth point. Take a steel metallurgy design institute as an example. Guided by market demand and relying on a national R&D platform, it develops the R&D and manufacturing business of technical equipment by giving full play to the synergistic effect with other internal business segments and external resources, and gradually promotes the organizational integration of mechanical design and mechanical manufacturing. At the same time, it focuses on intelligent manufacturing. Expand the links of equipment consulting, operation and maintenance, update and transformation, and provide customers with the full cycle of intelligent equipment services.

Investment and financing operations. Under the premise of focusing on the main business and controlling risks, the way of focusing on project investment and supplemented by financial investment can be adopted in a timely manner to lock in high-quality projects, tap the value of the industrial chain in the operation side, and improve the efficiency of stock funds. Taking a steel metallurgy design institute as an example, in the fields of energy conservation, environmental protection, industrial gases, etc., through cooperation with social capital, it invests in high-quality targets and holds operations, thereby obtaining stable project earnings.

Stick to two big markets

Domestic market

For the existing market, continue to cultivate old customers, strengthen the contact with various resources, and consolidate through quality services. For new markets, we can adopt business-oriented, hot-spot oriented and customer-oriented decision-making layout, among which, the business orientation generally adopts the progressive way of "setting up a project department - setting up local regional office" for market layout; Hot spot orientation, that is, explore the Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing Shuangcheng Economic Circle, Yangtze River Delta, Xiongan New Area and other national development strategic hotspot areas for market layout; Customer orientation is to carry out market layout by expanding customer attributes and territories. For example, for steel engineering business, we can explore the expansion from serving state-owned large steel enterprises to serving private steel enterprises and foreign steel enterprises.

At the same time, it is necessary to conduct accurate research and judgment on market trends. For example, in the field of steel engineering, a wide range of new projects, high-energy projects are not sustainable, and overhaul, technical transformation, carbon reduction needs will gradually emerge during the "14th Five-Year Plan" period, need to plan in advance.

International business

International business has its own unique attributes. Although the "14th Five-Year Plan" has been affected by the epidemic, in the face of the overall environment of excess capacity, many iron and steel metallurgy design institutes still regard the development of international business as an important strategic direction. In the development of international business, the first is to maintain strategic focus, the international business cycle is long, the cost is high, the implementation is difficult, once the strategic direction is determined, we need to cultivate and cultivate the mentality of continuous investment; The second is to build a wide circle of friends for international business, and constantly strengthen cooperation with relevant government departments, chambers of commerce, financial/insurance institutions, window platform companies, etc.; The third is to strengthen the training of international talents, cultivate a professional team with international vision and proficiency in international standards; The fourth is to establish a project management system in line with international standards, and improve the risk prevention and control mechanism; Fifth, select high-quality countries, and strive to achieve rolling project development through localized development, so as to reduce marginal costs.

Improve lean management

Promoting standardization, process and digital construction is an important breakthrough for the management improvement, production quality improvement and innovative development of iron and steel metallurgy design Institute during the "14th Five-Year Plan" period.

By steadily promoting the construction of a sound management and digital system, data and information islands are opened up; Build a multi-level, three-dimensional, digital product and business system to achieve service upgrading and efficient business operation; Build a solid digital organizational, talent, cultural and ecological framework. Some iron and steel metallurgy design institutes are exploring the integration of internal management and business mechanism with the new generation of science and technology, so as to establish a lean operation system for the whole life cycle of enterprise management and project construction.

Taking a steel metallurgy design institute as an example, it is led by the "system concept" and led by the Digital Information Department to achieve the effective integration of enterprise information resources through digital and network architecture. A full-chain digital control system has been established for market development, parametric design, cost accounting and control, three-dimensional collaborative design, project management, and intelligent operation enabled by scientific and technological products and digital technologies, which has effectively improved the overall operation and management level of enterprises.

Increase investment in scientific research

The outbreak of COVID-19 has accelerated the process of anti-globalization and the restructuring of industrial chains, and the domestic substitution of high-end equipment, high-end materials and high-end products has ushered in unprecedented development opportunities. For Iron and steel Metallurgy Design Institute, in the "14th Five-Year Plan" period, in-depth layout of no-carbon/low-carbon smelting technology, research on oxygen-rich blast furnace, non-blast furnace ironmaking, electric furnace and other technologies, development of green energy-saving technology, focus on ultra-low emission process and process interface optimization and upgrading, actively participate in and promote the construction of low-carbon production evaluation system and trading system in the steel industry. Further accelerating the pace of core technology productization and integration is an important measure to give play to the advantages of industrial chain/value chain integration, improve competition barriers, and enhance the industry's right to speak.

With the continuous emergence of technological innovations such as cloud computing, artificial intelligence, and the Internet of Things, and the acceleration of application scenarios such as 5G commercialization and big data, iron and Steel metallurgy Industrial Design Institute needs to think about how to rely on its own business capabilities, rationally layout forward-looking technologies, and win first-mover advantages for enterprises to cut into high-end industries or high-end industrial chain links.

Construct a three-dimensional ecosystem

With the in-depth layout of the diversified business of the enterprise and the full-cycle service of the project, during the "14th Five-Year Plan" period, the iron and Steel Metallurgy Design Institute needs to obtain qualifications on the basis of existing resources, build a team, and supplement the upstream and downstream resources of the industrial chain. The traditional self-cultivation mode often requires a long period. Therefore, enterprises can actively explore the extension development mode, accelerate the construction of cooperation ecosystem with platform-based thinking, comprehensively layout the external cooperation resources of the whole life cycle industry chain of the project with the principle of win-win, and actively explore the use of investment, merger and acquisition or equity cooperation. Strengthen the integration of external information, capital, technology and talents, and quickly supplement the core resources needed for the development of the company.

Taking a steel metallurgy design Institute as an example, it successfully injected capital into Angang Group Engineering Technology Co., LTD., as a strategic investor, in December 2020, thus "chemical reaction" occurred with steel enterprises through equity ties, further enhancing market viscosity and expanding business scenarios.

At the same time, we should pay full attention to the construction of the circle of friends from the height of building a business ecology, uphold the concept of achieving customers, employees, shareholders and partners, provide sincere service for customers, build a development platform for employees, create value returns for shareholders, provide efficient and convenient cooperation environment for partners, and achieve multi-party symbiosis and win-win.