How can the steel and equipment manufacturing industries go abroad under the “Belt and Road” strategy?

Recently, the "Belt and Road" International Cooperation Summit Forum will be held in Beijing. Since the initiative was first proposed in 2013, the "Belt and Road" construction has grown from nothing to something, from point to surface, and has been recognized and welcomed by more and more countries and regions. Let's follow the industrial control editor to learn about the relevant content.

How can the steel and equipment manufacturing industries go abroad under the “Belt and Road” strategy?

In the more than three years since the Belt and Road Initiative was proposed, all kinds of projects have sprung up, ranging from infrastructure covering railways, ports, bridges, public safety facilities to industrialization construction and cultural projects.

Take steel as an example. The steel production of countries along the Belt and Road increased significantly in 2016. According to the latest data from the Lange Steel Research Center, there are 25 steel-producing countries along the Belt and Road within the statistical scope of the World Steel Association. In 2016, the 25 countries produced a total of 297 million tons of steel, a year-on-year increase of 4.0%, 3.3 percentage points higher than the total output growth rate of 66 countries (0.7%).

It is estimated that in 2016, my country exported a total of 29.506 million tons of bars, wires, small and medium-sized steel sections, large steel sections, railway materials and rebars to countries along the Belt and Road, accounting for 46.1% of the total steel exports to them.

The huge win-win space is also allowing more and more Chinese steel companies to actively participate in the “Belt and Road” construction and provide high-quality steel raw materials for various key engineering projects.

The First Financial reporter learned that in January 2016, Hesteel Group Wugang Company obtained an order for 1,000 tons of hydrogen sulfide corrosion-resistant steel for the second phase equipment manufacturing of Batudal Refinery in Kazakhstan; in February 2016, Egang Company, a subsidiary of Baowu Group, obtained the right to supply bridge steel for the China-Malaysia Friendship Bridge, becoming the only Chinese supplier of the bridge project.

After winning the bid for partial supply of steel plates for the bases and towers of 33 wind turbines in Pakistan's Dawo Wind Power Project in 2015, Ansteel Group again won the exclusive bid for the 8,000-ton rail demand contract for Pakistan's urban rail transit project in 2016.

In addition, the first batch of 3,000 tons of spiral welded pipes made from Baotou Steel's rare earth high-strength steel were used in the construction of Egypt's Port Said; Nanjing Steel received the full order to provide 8,440 tons of steel plates required for Turkey's Kazan alkali mine processing project.

Wang Guoqing, director of the Lange Steel Research Center, told the First Financial reporter that by transforming China's current steel industry advantages in production capacity, technology, experience and model advantages into cooperation advantages with countries along the route, a new development pattern for the steel industry in countries along the "Belt and Road" will be promoted.

In general, China's steel trade and steel production capacity cooperation with countries along the Belt and Road is based on complementarity. It is not about transferring outdated and polluting production capacity, but about jointly negotiating, designing and building new steel industries with local countries.

In addition to the steel industry, as a world-leading supplier of logistics equipment and energy equipment, CIMC Group is also stepping up its layout for the Belt and Road Initiative.

A relevant person in charge of CIMC Group told the reporter of China Business Network that the market value of semi-trailers in emerging markets was about 6 billion US dollars in 2013, and it is expected that the market size will increase by about 30% by 2017. At present, CIMC Vehicles has carried out business in many countries along the "Maritime Road", established outlets, and gradually expanded its extended development.

There is no doubt that the “Belt and Road” strategy will drive large equipment companies to “go global”, and CIMC’s offshore products are also expected to be included in this national list. The group said that as a general contractor, the company will be one of the leaders in going global, driving a group of companies in various links of the industrial chain to go global collectively.

In the road transport vehicle business, CIMC invested USD 15.75 million in the countries along the Belt and Road Initiative from 2012 to 2016, of which USD 12.79 million was realized in sales revenue in 2016 alone.

Relevant person in charge of CIMC Group said that CIMC Group will strive to seek business breakthroughs and model innovation on the basis of existing business, keep close to national policies, hold capital leverage, recognize the general trend, identify risks, and actively participate in the country's "Belt and Road" strategic planning with the attitude of a "promoter", "explorer" and "innovator", embrace historical opportunities, and take advantage of the situation to complete the layout of emerging markets and long-term development of various businesses.

As early as last year, China Copper Corporation, an important platform of the copper sector under China Aluminum Corporation, moved its headquarters to Kunming in order to better cooperate with the "Belt and Road" strategy.

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