Top 10 News of Guangdong Stainless Steel Industry in 2014
It was a difficult and marvelous year of Stainless Steel Industry in 2014. Having suffered lots of events and ups and downs in 2014, the stainless steel industry will continue to upgrade and shuffle in 2015. We hope stainless steel industry will have a bright future in Yang year. GDSSMPA had summarized the top 10 news of Guangdong Stainless Steel Industry in 2014 as follow:
1.The First Session of Directors (Supervisors) Inauguration of GDSSMPA (Keyword: Organization)
The first session of Directors (Supervisors) Inauguration of Guangdong Stainless Steel Materials & Products Association (GDSSMPA) was held in the third floor of Foshan Hilton Hotel on 5:50pm, April 18, 2014. More than 500 persons presented at the inauguration, including over 150 representatives from member enterprises, representatives from famous enterprises in the stainless steel industry, leaders from Governments. It is learnt that GDSSMPA is the first provincial stainless steel association that with independent corporate capacity.
Comment: It is important to enhance solidarity, get together and seek development of stainless steel industry in these hard two years. As GDSSMPA took several measures after its establishing in the interests of their members and provided member services, it had grown rapidly in a year to be an industry organization who owns more than 200 members including a group of leading enterprises. Therefore, GDSSMPA will play its role as the reputation and influence increased.
2.A New Force of Private Cooperation Wide Cold Rolling Emerged Unexpectedly (Keyword: Cold Rolling)
With new technology such as advanced 18-roller, 20-roller or 18-roller five rolling mill, Guangfeng, Chengde, Hongwang, Zhongsheng, Liancheng, Xinrun and so on local private enterprises set foot in wide cold rolling area in 2014 and their product covered 200, 300 and 400 series. It is reported that these enterprises had a certain competitiveness in the market.
Comment: Cold Rolling is a development trend in the realm of Stainless Steel recently. Product structure adjustment, technology and equipment upgrading and market share seizing are the current situation of stainless steel development, which also can laid a solid foundation for enterprises’ future development. Quality improvement so as the production capacity increasing. There were large scale steel factory such as TISCO, LISCO and so on cold rolling private enterprises in Jiangsu, Fujian etc. of the Southern market which will cause competition instead of outstanding in 2015.
3. Jieyang Sino-German Resource Recycling Base (Keyword: Mode)
Chairman Xi Jinping and German Chancellor Angela Merkel jointly issued a Establish Sino-German Comprehensive Strategic Partnership Joint Statement and they witnessed the documents signing on German local time March 28th, 2014. Among ten signed Economic projects the Sino-German Resource Recycling Base project is the only one for Guangdong. Therefore, Guangdong Top attached great important to it and Secretary Hu Chunhua, Governor Zhu Xiaodan and so on leaders visited there for guidance.
Comment: As one of the Important Hardware Stainless Steel Industry Base in Guangdong Province or even in China, Jieyang had a place in the Stainless Steel Industry layout. The Sino-German Resource Recycling Base greatly pushed the comprehensive upgrading of Jieyang Stainless Steel Metal Industry. Large quantities of hardware stainless steel and electroplating enterprises got together into the park, changing their ways, solving the problems of backward processing methods, scattered and disordered, environmental pollution and safety hazards. This mode of supported by Government, led by association, participated by enterprises is worth learning by other stainless steel producing areas.
4. GDSSMPA Organized the Stainless Steel Brand Enterprises Selection and Awarding Ceremony (Keyword: Brand)
GDSSMPA firstly carried out a public welfare activity---The First Guangdong Stainless Steel Industry Brand Enterprise 2013 Selection with the theme of Brand Power, Core Competitiveness in Guangdong Province or even in China in Feb. 2014. After member enterprises submission, secretariat checking, experts evaluation and Joint Meeting of Chairman voting, the First Stainless Steel Brand Enterprises Awarding Ceremony was held in Swissotel Foshan from 3:00pm to 6:00pm on July 12th, 2014. There were more than 300 persons including the partners and Government leaders presented at the ceremony and witnessed the Guangfeng Steel Industry, Haili Group, Chengde Special Steel, Hongwang Stainless Steel, GNYN Stainless Steel and so on 17 enterprises got the awards.
Comment: Brand is Productivity. Except product quality, sales channel and after-sales services, the brand awareness, influence and reputation are also the core competitiveness for a stainless steel enterprise. GDSSMPA guided and cultivated brand enterprises, which actively promoted the brand building in the stainless steel industry. Brand and quality with both hands to formed a good atmosphere in competition.
5. Anshan Steel Invested in LISCO (Keyword: Joint)
Deputy General Manger of Anshan Steel Mr. Yu Zisu and President of LISCO Mr. Li Bixian had signed the contract on Oct. 17th, 2014. Anshan Steel Group increased their investment by holding 60% stake of LISCO which was subordinated the E United Group. By the end of December, LISCO and Hanyang had already completed name changing.
Comment: Stainless Steel Industry shuffled when the market being depressed. It is the classical model of cross-straits cooperation in steel industry that Central Anshan Steel and Taiwan E United had done. Though LISCO had been in the list of top five stainless steel manufacturers in China, it suffered the pressure of environment protection and cash flow. This is a win-win move. Anshan Steel finally can be involve in the stainless steel area, perfect its steel chain and Southern Chain market layout. What’s more, the core competitiveness of Anshan Steel can be strengthened. Will Anshan Steel be larger and stronger? Let’s wait and see.
6. GDSSMPA established 3 Professional Committees (Keyword: Together)
In order to provide members more meticulous, direct, professional and efficient services and a professional platform for communication, cooperation and development, GDSSMPA established 3 affiliates including the Stainless Steel Cold Rolling Committee, Stainless Steel Pipe-making Committee and Stainless Steel Decorating Committee which directly under the leadership and management of GDSSMPA in Oct. 2014.
Comment: The three Committees is the first professional organization in the realm of stainless steel industry. It means the development of stainless steel industry become more professional. It also a move for industry organization to fractionize its filed and better serve for members. The effect of Committees will emerge and be strengthen, that is, it will play an positive role in enterprises’ interaction, resource integration, collaboration and development together.
7. Discontinued and Collapse in the Second Half (Keyword: Fund)
From 30 May to 4 June,2014, Foshan Intermediate People’s Court had received five applications from Guangdong Development Bank Shunde Branch for bankruptcy reorganization of heavy metal industry. The total liability was more than 4 billion which renewed the bankruptcy reorganization record of Foshan City or even the whole Guangdong Province. It is not a unique instance, Foshan stainless steel rolling and Jieyang stainless steel trading also came across some events such as business funding strand breaks, bankruptcy and run away in the second half which made business dealings become more cautious.
Comment: Blindly big expanding for years, some stainless steel enterprise suffered the consequences: on one side, the increasing competitiveness causing shoddy goods making and chaos in the industry development; On the other side, investment failure form the bank loan or bank funds tightening, some enterprises got into cash flow trouble. To find a sustainable way in the predicament, enterprise need to make long term planning, do not be speculation and focus on it’s own field. Bank and other financial institute also need to give up One Size Fits All approaches to relax policy for good reputation and healthy development enterprises.
8. Environmental Protection Investigate Intensified in Stainless Steel Enterprises (Keyword: Environmental Protection)
Guangdong stainless steel industry represented in Foshan had suffered lots of difficulties in 2014, among which the environmental protection is an insurmountable red line that can not be ignored. A number of Foshan stainless steel surface treatment processing enterprise had been punished by shutting down penalties for not reaching environmental standards. There were some legal representative of stainless steel processing enterprises in Foshan and Zhaoqing had been arrested and sentenced. Foshan therefore took the lead in the first set of full-time Green Police who is responsible for investigating environmental pollution crimes and it had changed the Go It Alone pattern of environmental protection law enforcement. Foshan Public Security Bureau of Economic Investigation Detachment Environmental Crime Investigation Unit and Shunde Public Security Bureau of Environmental Crime Investigation Squadron held the unveiling ceremony together and became the fist Green Police Institute in Guangdong Province on Oct. 8th. Environmental violation will not only be subject to administrative processing but also be on the investigation and prosecution by Public Security Organs for severe cases in the future.
Comment: Combating environmental crime had been institutional, professional and normalization as Government emphasis more on environmental protection than ever before. At the same time, the implementation of administrative and criminal law enforcement will suppress illegal enterprises in full range. The most severe environmental protection law officially implemented in the New Year’s Day of 2015, which benefit the country, enterprise and people. Therefore, stainless steel enterprises need to adapt to new environmental policies and regulations and learn from peer enterprises who meet the environmental requirements for seeking long term sustainable development environment. Besides, enterprises need to seek to improve the value-added products. Law enforcement agencies should also take retention of the processing sectors into consideration during stainless steel industrial chain building and give appropriate buffer time for enterprises to adjust and optimize instead of One Size Fits All approaches.
9. Decorative Stainless Steel Tube Redefinition (Keyword: Innovation)
One of Stainless Steel Tube Enterprise of Foshan held a Colored Stainless Steel New Product Release Conference in Oct, 2014. Its decorative tube had been innovated in color. pattern, connection technology and style, etc. which completed subversion of the monotonous and cold feeling of traditional stainless steel and had aroused strong concern in the industry and among the dealers.
Comment: Partly estimated, represented in Foshan, there are more than 500 tube-making enterprises in Guangdong stainless steel decorative tube industry. There are problems that every enterprise should seriously think about for how to be special, how to breakthrough original technology and application limitation to find another way and how to compete with aluminum industry to get more market share. Not only the enterprise need to control quality of stainless steel tube but also it should meet customers’ needs to increase the added value and competitiveness. Therefore, it can find opportunities in the process of urbanization and market competition.
10. Guangdong Stainless Steel Materials and Products Association Held Anniversary Celebration 2014 (Keyword: Power)
The General Assembly & Anniversary Celebration 2014 of GDSSMPA was held at the functional banquet room where gathered more than 500 Government leaders, the elite from Guangdong and other provinces on the third floor of Foshan Hilton Hotel at 6 pm on 28th Dec., 2014. The Celebration was consist by General Assembly, Gala Dinner and Theatrical Performances.
Comment: It is the opening and fundamental year of GDSSMPA with high stating point, high standard and high requirement operation mode. It had have influence and reputation in the stainless steel industry which laid a foundation for being bigger and stronger. The Anniversary Celebration which held by the end of this year not only made report of working summary and plan, but also created an opportunity for member enterprises to communicate with each other. GDSSMPA plays a positive role in boosting confidence in the industry as overall market downturn and trend not encouraging this year.
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