In 2000, domestic iron ore is less than 200 yuan per ton.

The reserves of Xiling iron ore are limited, and there is no potential for a significant increase in the mining volume in the future. Even due to environmental factors, the annual mining volume will be controlled by about 1.5 million tons.

Therefore, the mining, crushing, ore dressing process was added to the end of selling iron fine powder to steel companies. The total output value created by Xiling Iron Ore in one year was only about 300 million yuan.

It is just an industry with narrow development space and limited potential to support 22,000 employees. It is conceivable that the burden is heavy.

As for Rongxin, it is okay to take over Xiling Iron Mine, but they would rather spend hundreds of millions of funds to exchange for mining and mineral processing equipment than to clear out the seriously surplus employees.

It is just that it is daunting to clear 20,000 employees in the Xiling Mine Area at one time, and the difficulty is also daunting; at the same time, the liquidation fee will not be too low.

Japanese-funded Fuji Iron Manufacturing has also participated in this comprehensive restructuring of the Provincial Steel Corporation.

As for Fuji iron making, I don’t want to touch too sensitive social problems in China, so I won’t get involved in the heavy burden of Xiling Iron Mine.

After many negotiations, the reform plan was finally finalized in late June. Rongxin Group, Huaihai State-owned Assets and Fuji Iron and Steel Manufacturing Co., Ltd. was jointly initiated by Rongxin Iron and Steel United Co., Ltd. to accept the steelmaking business and assets of the Provincial Steel listed company, Xinjin Iron and Steel, Meixi Fuji Iron and Steel.

After the establishment of Rongxin Steel, the total steelmaking capacity will reach 6.5 million tons. Huaihai State-owned Assets holds 29% of Rongxin Steel shares on behalf of the provincial government, Fuji Iron and Steel holds 20% of Rongxin Steel shares, and the remaining 51% of the shares are held by Rongxin Group.

Not to mention the competition and grudges between Jingjing and Hu, and the Shenggang and Meigang, after the integration of Rongxin Steel, it will be possible to launch the second phase of Xinjin Steel in the foreseeable future. The total steelmaking capacity of Huaihai Province exceeds 30 million tons, which will soon become a reality.

The steel production capacity exceeds 30 million tons, which will be of landmark significance to the economic development of Huaihai Province. Therefore, the province and Donghua City have placed hope for the comprehensive reform of the provincial steel industry. The narrow factional entanglement this time does not have much room for counter-revolution.

Rongxin Steel will be headquartered in Xinjin. After the restructuring plan is approved, all parties signed an agreement and will be established in Xinjin on July 8. In the later stage, it will be based on Xinjin Port to further expand steelmaking production capacity.

Shen Huai, on behalf of Huaihai State-owned Assets, rushed to Xinjin with Tang Baocheng to attend the listing ceremony of Rongxin Steel. Tang Baocheng will be sent by Huaihai State-owned Assets Supervision and Administration Commission to join the board of directors of Rongxin Steel.

After the listing ceremony, Shen Huai did not stop for too long and took a bus to leave Xinjin in the afternoon.

Fan Wenzhi, Chen Baoqi, Yamazaki Nobuo and other guests stayed to participate in the evening entertainment.

After Liang Rongjun left the provincial state-owned assets, he represented Rongxin Group as the general manager of Rongxin Steel and led the integrated management team. After two years of dormant in Rongxin Group, Hu Lin also officially represented Rongxin Group as the chairman of Rongxin Steel. He was considered to have officially come to the forefront and became a dazzling new star.

With Xinjin Steel Construction as a symbol, although Xinjin is not like Meixi and Xinpu, its development speed has been extremely fast in the past two years.

Hu Lin did not go out to see Shen Huai off, but he was always at the station window. He watched Shen Huai take a bus away, watched Liang Rongjun walk back, and asked him:

"How to deal with Xiling Iron Mine within Huaihai State-owned Assets? There should be some movement, right?"

"The preliminary plan is out," Liang Rongjun nodded. The restructuring plan cannot be completely confidential. The provincial state-owned assets and Xiling Iron Mine need to be fully discussed. Only after all parties reach an agreement will the plan be submitted to the province for approval. He said, "Chen Huai still hopes to transfer all the assets of Xiling Iron Mine to Huaimei, and then Huaimei Group, Meigang Co., Ltd. and Changqing Group initiated the establishment of a joint-stock company for rectification; and at the same time, the project contracting and construction business will be split, and a larger-scale engineering company will be established to prepare for the next step of exporting labor to overseas..."

"Changqing Group reached an agreement a year ago, investing 200 million US dollars to acquire 40% of the equity of Tangli Iron Mine in East Africa. This time, Meigang will inject another 400 million US dollars with the mining department of Changqing Group, and have accumulated 80% of the controlling stake in Tangli Iron Mine," said Fan Wenzhi. "Next, Meigang and Changqing Group will officially develop Tangli Iron Mine, establish an engineering company, and export labor overseas. There will be a clear direction - we still cannot use this resource..."

Many Africa are undeveloped mining areas. I want to transport iron ore out and build a series of infrastructure including mines, ore dressing plants, iron ore terminals, and 200 kilometers of mining railways. After Meigang is listed in London, a lot of information will be announced to the public, so they want to know that the capital and market operations that Meigang Co., Ltd. participates in is much more convenient than before.

Tangli Iron Mine will start construction soon. After Meigang, Changqing Group and Huaimei took over Xiling Mining, they will divide the engineering construction business and establish an engineering company. In addition to diversion of the currently severely surplus employees of Xiling Iron Mine, the more important thing is to import a large amount of human resources into the construction and operation of Tangli Iron Mine.

Over the years, in order to increase the income of the mining area and divert surplus employees, Fan Wenzhi and Liang Rongjun have been strengthening the development of infrastructure projects such as mines and mines. There are a total of thousands of related technologies and construction personnel, which can be said to have laid the foundation for the formal establishment of Xiling Iron Mine Engineering Co., Ltd.

Xiling Iron Mine is a waste in their hands, but when they see Meigang being able to eat Xiling Iron Mine with relish, they feel a little hindered, but there is no way. Rongxin Steel has not yet developed to that level. Currently, there are only two or three steel companies in China that are truly looking for minerals, including Yangang and Zhenhai Steel. Rongxin Steel can only focus its vision on expanding steel production capacity in China first.

Although the landing price of iron ore is only 200 yuan per ton, and there is no big profit to enter the overseas iron ore market at this time, the total number of iron ore imported in China last year was 70 million tons. With many layouts on the coast and steel bases along the river were gradually built, the annual import of iron ore will double in the next two or three years, which will directly affect the supply and demand balance of the international iron ore market.

Therefore, the future trend of sharp rise in iron ore prices can still be seen.

However, Rongxin is not able to run out to find mines yet.

No one will transfer rights and interests at will in the overseas developed and mature mining areas; undeveloped mining areas will have to invest a lot of money in infrastructure. Meigang and Changqing Group invested 600 million US dollars in Tangli Iron Mine, which is only the first phase of the supply of 8 million tons of iron ore. In the later stage, it will also invest 8 to 1 billion US dollars in huge amounts of funds. It is better to expand production capacity in China if Rongxin has this money.

Although Changqing Group acquired iron ore in Thailand and other places as early as 1997, it was only after three years of brewing that it invested heavily in East Africa last year, and acquired the interests of Tangli Iron ore with a total reserve of 1.2 billion tons. The large-scale development was not until the second phase of Xinpu Steel was officially launched before Lamei Steel was launched.

If we keep up with the development pace of Meigang, Rongxin will have to wait three or four years before it can take the path of mineral exploration outside Shanghai.

More importantly, after the establishment of Rongxin Steel, it is close to Meigang in terms of production capacity scale, but there is still a lot of gap in profitability.

Meigang Co., Ltd. issued a forecast that the profit in the first half of this year has reached an astonishing 1.2 billion yuan, and the overall listing has raised 3 billion yuan in funds. In addition to meeting the construction of the second phase of Xinpu Steel Project, the cash in hand still has a lot of room for expansion in the upstream of the industrial chain, which is not comparable to Rongxin.

After Rongxin Steel gets rid of the related burden, its profit in the second half of the year will only barely reach 400 million; by only relying on its own profit accumulation for development, Rongxin Steel is far inferior to Meigang.

However, the greatest significance of the establishment of Rongxin Steel to Rongxin Group is that the Rongxin Group can finally fully control a huge heavy industry consortium, unlike in the past, the structural focus only focuses on financial businesses such as Rongxin Bank and Rongxin Securities. The formation of the three troop troop of Rongxin Steel, Rongxin Real Estate and Rongxin Construction has finally consolidated Hu Lin's position within Rongxin Group and completed the power transfer of the Hu family within Rongxin Group.

In fact, it was a bit surprising that Shen Huai did not secretly exert resistance in the comprehensive reform of Provincial Steel.

*********************************

Shen Huai went to Donghua City and met Guo Chengze, Meng Jiansheng, Zhao Tianming, Chen Bing and others.

The Lanjiang Expressway will be completed in one year. Xiapu and Tangzha will jointly establish a bridge industrial park under the Meiqing Cross-river Bridge. As an extension to the east of Meixi New District, the groundbreaking ceremony will be held today.

The relevant areas are affiliated to Xiapu Jinghai Township. Donghua City even advocates directly assigning relevant areas to Meixi New District. Xiapu also does the work of connecting them. However, the adjustment and approval of administrative areas will take time, so the development will be started in the form of a joint industrial park. In fact, all infrastructure is led out of Meixi New District. In addition to the east extension of the Yangtze River Highway, Zhuxi Avenue and Xiamei Highway east extension were also constructed a year ago.

"Xiapu has long reached the standard of applying for the establishment of a county-level city." After leaving the groundbreaking ceremony, he took a bus back to Nanhu Hotel. Guo Chengzera Shen Huai took his car and discussed with him the future stay and stay of Xiapu with him. "In the future, Donghua City will develop on a large scale, or can only go east and integrate with Xiapu. I also advocate Xiapu's abolishment of county and district. I want to ask your opinions?"

Shen Huai nodded and said, "I support me; do you have any work I need to help with?"

The difference between counties and cities is extremely large, most concentrated in fiscal power and various administrative approval authority.

Tangzha District and Xiapu County have an economic aggregate equivalent, but when it comes to fiscal revenue at the district and county level, Tangzha District is now only half of that of Xiapu County, and more local fiscal and tax revenues are intercepted by municipal finance. In addition, the storage and transfer of construction land in Tangzha District are also basically controlled by the city.

If Xiapu can establish a county-level city, the financial and many administrative powers will be strengthened; if the county is abolished and established in a district, the relevant powers will be greatly weakened, including the power to transfer construction funds to the Huaihai Bay Government Construction Fund, which will also be included in the city and will no longer be controlled by Xiapu local area.

The Meigang System's strength in Donghua is most concentrated in Xiapu. Whether Xiapu is a county-level city or abolished county and established a district has the greatest impact on the Meigang System, Guo Chengze thought about doing the work of Shenhuai first.

Chen Huai agreed too simply, and Guo Chengze hesitated instead, unable to see through what he was thinking.

Seeing the suspicion in Guo Chengze's eyes, Chen Huai realized that his agreement was too straightforward, and could only smile bitterly in his heart.

Xiapu's local fiscal and tax revenue may exceed 7 billion this year. After several years of development and construction, the land price and housing price of Lingang New City will even be higher than that of the urban area. The income from the transfer of bulk land in Lingang New City in the future will be considerable. From the perspective of narrow regional protection, it is normal for Xiapu to control these financial resources and use them in Xiapu, but it is impossible to achieve balanced and coordinated development in a larger area.

Donghua will develop into a regional central city in the future. At this time, the urban area of ​​less than 100 square kilometers is obviously too small. Guo Chengze proposed to abolish Xiapu's county and establish a district at this time, which is also seeing that this is the key to opening up the overall pattern of Donghua's future urban development.

Of course, Chen Huai was not as heart-to-heart as Guo Chengze. He thought to communicate with Chen Bing and the others. Guo Chengze really wanted to promote related work, so they could not exert resistance.

************************************

The reception dinner was arranged at the Nanhu Hotel. In addition to officials and corporate representatives from the city, Xiapu County, and Tangzha District, Song Hongqi also brought representatives of Qingsha County to attend the groundbreaking ceremony.

The landing of Lanjiang Expressway and Meiqing Cross-river Bridge in Qingsha County’s Yangtze River Industrial Development Zone is on the edge of Meixi-Qingsha Metallurgical Industrial Park. After more than a year of cooperation between the two parties, including Fengli’s Tuduban project, there are already twenty metallurgical industrial park investment and construction projects. Both parties advocate that the second phase can expand the area of ​​the cooperation park eastward by another two square kilometers.

Song Hongqi presided over the work of Qingsha County Government at the beginning of the year, which was also a helpless move that had no hope of kicking Wei Nanhui out. Wei Nanhui officially continued to serve as the secretary of Qingsha County Party Committee as a member of the Standing Committee of Pingjiang Municipal Party Committee.

Although Wei Nanhui's political resources can obtain are far less than that of Song Hongqi, when it comes to his bold work style and ability to seize opportunities, it is not comparable to Song Hongqi. This has been fully reflected in the brewing process before regional cooperation two years ago.

Of course, Wei Nanhui is not a person who is ignorant of advancing and retreating. He is just unwilling to be kicked out by Song Hongqi, but he did not treat Song Hongqi as a fallen dog. The county government's work should try his best to show his skills.

Xie Zhi also attended the groundbreaking ceremony in the afternoon, but Chen Huai felt a little strange when he didn't see her standing with Song Hongqi at the reception dinner.

Xie Zhi and Song Hongqi have been separated for a long time, but they are still in marital status. If there is no special reason, Xie Zhi will not not accompany Song Hongqi to attend the reception dinner. But if something really happens, Song Hongqi will not attend the reception dinner calmly.

Although Chen Huai was confused, he didn't think too much about it, and it couldn't help him.

After the dinner, Tang Baocheng and others were about to rush back to Xucheng overnight.

It is rare for Chen Huai to come to Donghua. Zhou Yu and Xiong Daini are all "shouldered" in Donghua, so naturally they cannot leave that night without conscience. After the dinner, they chatted with Zhao Tianming, Zhou Zhibai and the others for a while, and found an excuse to leave and walk out of the hotel and get into the car that Zhou Yu drove out of the corner.
Chapter completed!