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The China Iron and Steel Association (CISA) recently elected Hu Wangming as acting chairman during its sixth membership meeting in Beijing. Simultaneously, the seventh CISA Council session unfolded, addressing the steel industry's challenges and future development. Hu Wangming, Secretary of the China Baowu Party Committee and Chairman, actively participated in this pivotal meeting.

 

A thematic exchange, featuring leaders from major steel enterprises, including China Baowu, offered insights into high-quality development practices. Hu Wangming's presentation, titled "Advancing Baowu's High-Quality Development through 'Four Modernizations' and 'Four Have,'" unveiled Baowu's strategic approach.

 

Hu Wangming emphasized the steel industry's stability and contributions to China's economy despite facing a complex environment. Baowu's journey in 2022 saw a downturn, with significant operational lag in the first half. However, a strategic shift in the latter half, focusing on "Four Modernizations" (technological innovation) and "Four Have" (astute management), led to a remarkable recovery. Baowu achieved a crude steel production of 130.77 million metric tons, operating income of $11.03 billion, and a total profit of $31.61 billion, meeting annual targets set by the State-owned Assets Supervision and Administration Commission.

 

Baowu embraced the imperative to transform from a "leader" to being "strong." The focus on becoming strong and excellent prioritizes strength. Baowu recognizes that achieving strength relies on technological innovation. The "Four Modernizations" (high-end, intelligent, green, and efficient development) responds to that.

 

In an era of stock competition and marginal profit development, Baowu concentrates on astute management. The "Four Have" principles - having orders, marginal production, profitable income, and cash profits - become crucial. Baowu emphasizes value creation, efficiency, and cost-effectiveness, aligning with the principles of "cash is king."

 

"Four Modernizations" and "Four Have" complement each other, enhancing Baowu's innovation and value creation abilities. These strategies equip Baowu to confront market challenges, navigate industry cycles, and fulfill its core function in line with national strategies. steelguru