Rich List Nineteen: Haixin Iron And Steel History

With the sound of a gun in the morning of January 22, 2003, Li Haicang, chairman of the Haixin Group, left his Haixin Group.

Li Haicang, the founder of the company, was killed in an accident, and Haixin company with 4 billion 300 million assets had to face a real succession problem. Who would inherit Li Haicang's share of more than 90% of the company's equity?

Who will take over the power of enterprise management in Li Haicang's hands?

On 3 19, Li Haicang's oldest son, Li Zhaohui, 22 years old, took over as chairman of Haixin Group.

Of course, the real creation of Haixin iron and steel kingdom is Li Haicang.

There is always a good entrepreneur behind a successful company.

"Many people think that most successful entrepreneurs are graduated from famous universities such as Peking University and Tsinghua University. In fact, most of the best entrepreneurs are trained in the market."

Enterprises and entrepreneurs themselves are interrelated.

An excellent entrepreneur creates an excellent enterprise, and the enterprise is the work of this entrepreneur. In the process of development, the enterprise itself will also promote the continuous growth of the entrepreneur. Regardless of his management level, theoretical level or his personal accomplishment, the growth process of the enterprise is also the process of practicing the personality of the entrepreneur.

This is a few points that Li Haicang, a famous economist who heard this visit, talked about when he interviewed the chairman of Shanxi Haixin iron and Steel Group Co., Ltd., Li Haicang.

Zhong Pengrong's view is vividly confirmed by Haixin Group and its head, Li Haicang.

Li Haicang was born in the south of the plain in the south of Wenxi, with many brothers and sisters and poor family.

In order to get rid of poverty, he left the land. He first built an oil house in the village, built a soap factory, and contracted a comprehensive store in the town. After that, he found a bigger way to make money.

At the beginning of 1987, Li Haicang raised 400 thousand yuan and set up the first joint coal washing coking plant in Wenxi, Yuncheng, Shanxi.

Since then, he has almost built a new factory in one year, and has built an area of 3.6 square kilometers on the loess land. He has set up seven independent legal entities, including the three iron coking plant, Haixin iron and Steel Co., Ltd., Haixin Investment Co., Ltd., Haixin steel rolling Co., Ltd., Haixin international iron and Steel Co., Ltd., Haixin real estate development Co., Ltd., Haixin Xingong India Cements Limited and so on. There are 14 branch factories, 7300 employees, and a large private enterprise group with a total assets of 3 billion yuan, Shanxi Haixin iron and Steel Group Co., Ltd.

40 million yuan cost, created 3 billion yuan in 14 years.

By the end of 2001, Haixin's total assets had increased 13 times in 14 years, and profits and taxes increased 5000 times.

By the end of this year, after the completion of Haixin's construction project, its total assets will turn over 14 times, and profits and taxes will increase by 13 thousand times.

At present, Haixin is the second largest iron and steel enterprise in Shanxi after TISCO, and its economic scale has entered the top 20 of the national steel enterprises.

From the Pingxiang stove to the machine coke, from the iron making to the steelmaking to the steel rolling, every adjustment of its product structure is the condensation and embodiment of Li Haicang's private entrepreneur's knowledge and courage.

He runs technological innovation through the whole process of restructuring.

When the country began to shut down the coke, Hai Xin already had machine coke. When the state eliminated small coke and small ironmaking, Haixin had built high technology and high efficiency iron making furnaces and steelmaking furnaces. When the steel market was becoming saturated, Haixin had used the advanced technology of the world's steel industry to produce products of high quality and low cost, and firmly occupied the market. Now, the five leading technologies in the international iron and steel industry have been divided into 4 parts, namely, slit rolling, oxygen enriched coal injection, splashing slag protection, hot metal pretreatment, etc., and new technologies such as refining, TRT refining, and differential pressure power generation are also being implemented.

Haixin's main technical equipment has reached the international advanced level.

It can be said that Li Haicang built a modern steel city on the land he had cultivated.

In the image of "Haixin Steel Corp", people are getting into trouble.

I saw several workers sitting in the comfort of the general control room, concentrating on the screen.

The molten steel of a furnace is refined under the control of the computer.

Li Haicang wandered in this modern steel city and enjoyed the process of automatic steelmaking.

Recently, Haixin Group's annual output of 630 thousand tons of high-speed wire electrical control system bidding meeting, Li Haicang admitted that Haixin is in the next stage of investment in what phase of the project, he is also in confusion.

Although the inner circle has already formed a virtuous circle and has strong redevelopment ability, it can be followed by the difficulty of how the enterprise should operate next.

He pointed out that this difficulty is different from the past. After all, China has joined the WTO. Private enterprises have begun to compete with state-owned enterprises and foreign-funded enterprises on the same platform.

The strong strength of the latter has brought strong pressure to private enterprises. This means that Haixin's next development can not be confined to the domestic market, but also to the international market. It is difficult to find a bigger development in a broader market.

Li Haicang told reporters that iron and steel enterprises are capital intensive and technology intensive industries. The threshold for entering the industry is relatively high, and it is difficult for ordinary private capital to enter.

Fortunately, Hai Xin has come in and has formed a certain scale. In the near future, it will become a joint venture with an annual output of 2 million 600 thousand tons of steel and 260 tons of iron, and is among the largest iron and steel enterprises.

However, in China and even the global economy is not booming, investment risk is increasing and profitability is decreasing.

Therefore, the decision of an enterprise is much more important than the production and operation.

There is a chance to adjust production and operation, but there is no opportunity to adjust if the decision is not good.

At present, enterprises should not only pursue profit maximization, but also pursue value maximization, and pursue value for money and value for money.

Therefore, how to develop Haixin is very important.

Now there is a saying in the society: in the case of a surplus of commodities, what is done is duplication.

Li Haicang believes that low level duplication of construction should be banned. However, if we want to support a high level of duplication of construction, we can not eliminate backward technology and productivity without high-level duplication, and we will not develop advanced productive forces.

Therefore, the development of Haixin Group should go along this road of high level repeated construction.

There is one thing that makes Li Haicang very sad.

Not long ago, during the public bidding of seamless steel pipe for the west east gas pipeline project, a large iron and steel enterprise with local advantages was defeated in Pohang, South Korea. From the results of the bidding, the price quoted by each party was 270 US dollars per ton of steel, while our company quoted 400 yuan per ton of steel.

A difference of 130 dollars per ton of steel is equivalent to 1075 yuan.

Foreign enterprises overcame Chinese enterprises with cost advantages, which fully exposed the low efficiency and low efficiency of Chinese enterprises, and also reflected that due to a series of problems such as mechanism and system, the ability of enterprises to maximize profits was weakening.

In order to deal with the seemingly irreconcilable contradiction between the rapid expansion of the scale and the maximization of profits, Li Haicang initially envisaged that after the existing project was put into full operation, we should choose the right area to build an oversize iron and steel enterprise with the lowest cost, the most advanced equipment and the most reasonable scale in the international steel and iron business.

By 2005, the company's assets and sales revenue will reach 15 billion yuan, reaching 50 billion yuan in 2010.

Now, he is organizing experts and scholars to examine and demonstrate.

If feasible, the plan will be divided into three phases.

The first phase of the project was completed in 2003 - 2005, with an investment of 12 billion yuan, of which 9 billion yuan of fixed assets, initially forming 5 million tons of iron and 5 million tons of steel production capacity, plus Shanghai Xin's existing production capacity, will reach 7 million 500 thousand tons of iron and steel, and enter the national 5 strong, with annual sales revenue of 20 billion yuan, profits and taxes 5 billion yuan, of which 1 billion 500 million yuan tax.

The second phase, from 2005 to 2007, invested 15 billion yuan to increase the production capacity of 4 million tons of steel and 4 million tons of iron respectively. At the same time, we made articles on the deep processing and high added value of steel products, so as to double the sales revenue and profits tax.

The third phase of the project, from 2007 to 2010, invested another 20 billion yuan, and increased the production capacity of 4 million tons of steel and 4 million tons of iron. On the whole, it formed an annual production capacity of 15 million tons of steel and iron, with a total assets of 50 billion yuan, annual sales income of 50 billion yuan, and entered the ranks of the international steel giants, striving to become one of the 10 steel companies in the world.

Li Haicang also has another idea to select some new industries or industries for development.

At present, the company has organized relevant personnel in pharmaceutical, chemical, electrolytic aluminum, real estate, infrastructure, high technology and other industries and industries to conduct consulting, research and inspection.

In spite of the familiar steel industry and other industries and industries, Li Haicang and Haixin Group have set the goal of building Haixin Group into an oversize enterprise group with total assets and sales income reaching 50 billion yuan in 2010.

A man always says, "man proposes, God disposes."

Can Li Haicang achieve these goals as scheduled?

When the reporter referred to this question, Li Haicang replied with a smile that it was wrong to use this sentence in enterprise management. Failure of enterprises means failure of decision making.

In Li Haicang's eyes, to be an enterprise is to talk about making things happen, and making things happen to others.

In the interview, the reporter found that those who are familiar with Li Haicang are full of hope and trust in his vision.

It is precisely Li Haicang's plan and blueprint, his hard work and hard work, and the fact that he has been in a new position after breaking through difficulties to make a small coking workshop developed into today's iron and steel city. Only then can Wenxi County get out of the shadow of the poor counties of the country, which makes one after another develop a miracle in Haixin...

Li Haicang is good at finding definite factors in many uncertain factors. He has the courage and wisdom to seek the known and seek unknown in the unknown, so that he and Haixin grow up step by step.

When asked whether this success brought him a sense of "being on the edge of the road and walking on thin ice", Li Haicang said that every entrepreneur should have a sense of crisis.

But if every day has the feeling of "deep in the abyss, walking on thin ice", what passion do we have to do?

He believes that an entrepreneur should be confident and should know how to use development to solve a series of deep-rooted problems in development.

In an interview with reporters, Li Haicang told the successful experience of these years.

Adhere to the principle of "two high and two low" in enterprise management: the highest technology and the highest efficiency; the lowest investment and the lowest cost.

Adhere to the four choices in project selection: cost is not the lowest in the world, and efficiency is not the best in the world. The technology level is not the highest in the world, and it can not be invested in 3 years.

In the interview, reporters found that Haixin's development also benefited from Li Haicang's five magic weapons, namely, cost, quality, integrity, capital and talents.

It was his skillful use of these five weapons that made him and Haixin Group today.

The cost is the most powerful weapon in product market competition, which is Li Haicang's first magic weapon.

Haixin is expanding at the same time, and the whole cost is decreasing.

By constantly adjusting the product structure, extending the product chain, expanding the scale of production, and strictly accounting inside, the production cost of steel products for terminal products has been greatly saved.

At present, Haixin pig iron cost is more than 840 yuan per ton, billet manufacturing cost is 310-340 yuan per ton, steel rolling manufacturing cost is 130 yuan per ton, financial, sales and management three tons of fees are 70 yuan, terminal product steel contains three large cost including tax cost 1615 yuan per ton, 300-350 yuan lower than the industry average.

Taking the most comparable steel billet in the world as an example, the cost in the United States is 1970 yuan per ton, 1710 yuan in Europe, 1690 yuan per ton in Japan, and 100 yuan per ton in Russia and Korea, while the cost of Haixin steel billet is only 1150 yuan to 1180 yuan.

Enterprises without market can not survive.

In order to open the market, people compete with each other.

There is a view that now the opening of product sales channels is based on the relationship, so the rebate will come.

Li Haicang said: "opening the sales channel depends on the quality of products, reputation is built on the quality of products, and quality is good enough to get a good market and bad quality."

It seems that the efficiency of enterprises depends on the quality of products, which has become Li Haicang's second magic weapon.