SHA GANG GU FEN(SZ:002075) Xin Hua Cai Jing·2025-09-10 09:35Core Viewpoint - The steel industry in China is undergoing significant adjustments, characterized by high production, high costs, high inventory, low demand, low prices, and low efficiency. The trend of "reduction development" is becoming the norm, with a projected reduction in crude steel production from over 1 billion tons in 2024 to around 800 million tons by 2050, a decrease of nearly 20% [1][2]. Group 1: Industry Challenges and Strategies - The steel industry faces a "strong supply, weak demand" situation, putting pressure on many steel enterprises. The focus is on optimizing product structure while controlling or even reducing steel production to enhance operational efficiency and market share [2][3]. - Jiangsu Shagang Group, a leading private steel enterprise, plans to produce 40.54 million tons of crude steel in 2024, ranking sixth globally. The company aims to shift from producing rebar, which has seen a significant drop in output, to higher value-added products like silicon steel and marine steel [2][3]. Group 2: Innovation and Market Expansion - Shagang is aligning its development with national strategies, focusing on high-end equipment and marine industries. The company has strengthened R&D in high-value-added products, such as non-oriented silicon steel for electric vehicles, contributing to the growth of the new energy vehicle sector [3][4]. - The company has established stable cooperation with 35 countries along the Belt and Road Initiative, with overseas market revenue reaching 556 million yuan in 2024, a year-on-year increase of 90.22%. Southeast Asia accounts for one-third of Shagang's total product exports [3][4]. Group 3: Operational Management and Environmental Sustainability - Shagang is transforming its operational management to adapt to the new market dynamics, emphasizing high-quality development and resource recycling. The company has invested over 10 billion yuan in environmental management projects, achieving significant reductions in energy and water consumption [5][6]. - The introduction of advanced production lines has led to a 95% reduction in land use and substantial decreases in energy consumption, enhancing the company's ability to respond to market demands and reduce carbon emissions [5][6]. Group 4: Talent and Innovation Strategy - Shagang's success is closely tied to its innovation strategy, which includes establishing research platforms and fostering collaboration with universities and research institutions. The company has received over 60 provincial and national scientific progress awards [6][7]. - The company promotes a culture of innovation, encouraging all employees to contribute ideas and solutions. This approach aims to leverage the flexibility of a private enterprise to enhance competitiveness in the evolving steel industry [6][7].