Wuhan Iron and Steel established pig farms a kilogram of steel prices can not reach 4 pork

Yesterday, Deng Qilin, general manager of Wuhan Iron & Steel, revealed that Wuhan Iron and Steel will prepare 10,000 pig farms this year. There will be slaughter of pigs during the year. This is not a whim of a large steel company, but part of the transformation plan to related industries.

8 days ago, Wuhan Iron & Steel and China Resources Group also signed a package of cooperation plans to carry out a number of gas, electricity and other cooperation, which also includes the construction of agricultural products stores. According to the plan, Wugang’s non-steel segment will exceed 110 billion yuan within 3 years, accounting for 30% of total revenue.

Last year, China's steel output was 680 million tons, equivalent to about half of the global total. If you let go of production, 800 million tons can be produced. Due to severe oversupply. In the first half of last year, the average profit rate of the industrial sector in the country reached 6%, and the steel industry was less than half, and it fell to 0.97% in the fourth quarter of last year. Right now, the price of 1 ton of rebar is about 4,700 yuan, an average of 4.7 yuan per kilogram, while the cheapest pork is nearly 26 yuan per kilogram, and the price of one kilogram of steel is not worth 200 grams of pork.

The cruel market status shows that the production method that still depends on scale and resources has come to an end. Yesterday, Deng Qilin said that adjusting the structure is not only a national requirement but also the only choice under market pressure. Deng Qilin said that starting this year with the exception of the Fangchenggang project, a penny will not be invested in the expansion of steel production capacity, and investment will be focused on related industries.

Compared with the main industry, the income of related industries is much higher. The high-tech industrial park of Wuhan Iron and Steel Company, which is located in the Donghu Hi-tech Zone, is expected to generate a profit of 1.4 billion yuan a year and a profit rate of more than 10%.

In fact, since last year, the non-steel layout of Wuhan Iron and Steel has been accelerated. It has built 8 charging and replacing stations for Shenzhen and won the bid for the BT project on the two sides of Wuhan Parrot Park Yangtze River Bridge. It has won the right to the general contracting operation of the core technology of Chery Automobile's Henan vehicle production base. Wait.

This year's non-steel breakthrough, in addition to raising pigs, there are many ideas WISCO. “A telephone call can be used to pick up and drop off kindergarten children, or to clear up the water pipes that are blocked at home. The German steel company ThyssenKrupp, which ranks number one in Germany, also offers such urban modern services. We are also preparing to build similar services. the company."

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Wugang pig raising is not new in global steel companies. In the past few years, with the overall downturn in the steel market, international steel companies have become “unprofessional” and the non-steel industry has accounted for more than 30% of the total revenue.

Germany's largest steel industry group ThyssenKrupp, non-steel industry accounted for 50% of the share, its elevators, automotive technology, machinery manufacturing, engineering design and trading business is booming, which elevator manufacturing has become one of the world's three major manufacturers.

Japan’s largest steel company, Nippon Steel, also has a non-steel share of about 35% of its total size. It has a wide range of involvement in the field, including engineering, urban planning, and non-ferrous metals.

Yesterday, Deng Gang, general manager of Wuhan Iron and Steel, said that with the sharp reduction in the profit margin of the main steel industry, the development of related industries is becoming a consensus of steel companies.