After the Spring Festival, a number of development and construction projects, led by Rongxin Construction, Rongxin Real Estate and the University Town Holdings under Huaihai State-owned Assets, including the East Ring Expressway, Nanwan Lake Expo Park, Nanwan Lake Convention and Exhibition Center, Nanwan Lake University City Huai University, Huaihai Polytechnic University, Huaihai Normal University New Campus, Nanwan Lake Software Industrial Park Phase I, University City Youth Apartment and other development projects have started to be newly built one after another; led by Xu City Government and Xucheng Urban Construction Investment Group, aiming to improve the "three horizontal and three vertical" road traffic, power supply and communication, water supply and drainage infrastructure projects of the infrastructure in Nanwan Lake New District, were successively put into construction before the New Year.

This kicks off the construction of Nanwan Lake New District.

The international industrial parks and power equipment industrial parks that were originally affiliated to Qinjiang District were all assigned to Nanwan Lake Riverside Industrial Zone. The province and Xucheng City also actively promoted the Nanwan Lake Riverside Industrial Park, the University City Science and Technology Park and Nanwan Lake New District to apply for a national-level new district.

The Huaihai Electric Heavy Industry Manufacturing Base, led by Huaihai State-owned Assets, and other major industrial projects such as the Dongshi Group's 50,000 car assembly line, have also started construction after the Spring Festival.

In the first half of the year, the Provincial Steel Group also launched a comprehensive restructuring work. Rongxin Group also made no secret of its desire to acquire controlling stake in Shenglin, and wanted to integrate Shenglin with its steel assets under Rongxin, and establish a large steel consortium that is truly capable of competing with large steel companies such as Meigang in China.

As a wholly state-owned backbone central enterprise, Rongxin Group will not touch on sensitive issues even if it thinks of acquiring the Provincial Steel Group in a full range.

The Hu clan made concessions in the fight for dominance in the construction of Nanwan Lake. Not to mention Cui Weiping, Chen Baoqi, Dai Lesheng and others had decision-making power at the provincial standing committee meeting. Provincial Party Secretary Zhong Limin also supported the comprehensive restructuring of the Provincial Steel Group, and Xu Pei should not be too aggressive.

How to reorganize the Provincial Steel Corporation, the problem is still to be discussed with the Provincial State-owned Assets Office, Provincial Steel Corporation and Rongxin Group.

Shen Huai no longer took charge of the work of the enterprise office, property rights office and other departments of the Provincial State-owned Assets Office, and focused his main energy on Huaihai State-owned Assets. Due to the comprehensive restructuring of the Provincial Steel Group, it involved sensitive issues of competition with Meigang. He should have avoided it, but in fact he could not.

Rongxin Group mainly wants to acquire the steelmaking assets of the Provincial Steel Group, while assets including Xiling Iron Mine are expected to be accepted by Huaihai State-owned Assets.

The domestic steel market and steelmaking capacity have increased significantly, which naturally stimulates demand for iron ore.

Xiling Iron ore with an annual output of 1.6 million tons of concentrate and a reserve of tens of millions of tons is not a high-quality resource from this perspective.

However, the biggest problem with Xiling Iron Mine is its backward equipment and complex personnel; this has a great relationship with the development history of the provincial steel industry and is considered a historical burden.

Although after many streamlining, the total number of employees in Xiling Iron Mine, which has an annual output of 1.6 million tons, is still as high as more than 20,000 in 2000. If it weren't for the drag of Xiling Iron Mine, the annual profit of the Provincial Steel Group would have increased by another 200 million to 300 million.

Xiling Iron Ore has limited reserves and limited production capacity. After Xinjin Steel is completed, the provincial steel industry will have to earn nearly 4 million tons of high-quality iron ore from overseas every year. In the future, it will only build a larger-scale second-phase steelmaking project in Xinjin Port. In this way, Xiling Iron Ore will become a waste of money for Rongxin.

It is precisely because of the drag of Xiling Iron Mine that the profitability of the Provincial Steel Group has declined in recent years. It is far from comparable to money-making machines like Meigang, and its halo is not as dazzling as that of Huai Coal, Huaihai Rongtou and other provincial state-owned assets groups. Therefore, the Provincial Steel Group has become a useless rib in the province. In addition to the operations of Rongxin and the Hu people, the Provincial Steel Group also tends to support the comprehensive restructuring of the Provincial Steel Group.

Throughout May, Chen Huai pulled Sun Fujing and ran to Xiling for two or three times.

Xucheng has developed rapidly in the past two years, and it is hard to imagine that there is a poor county like Xiling under Xucheng.

Xiling is located in the northeast of Xucheng and southwest of Yiling, surrounded by mountains. It was prospered because of iron ore in the early years and there were several small steel plants. Apart from this, there were no decent industrial enterprises. Although it proposed to develop the tourism industry in recent years, due to the continuous mining of iron ore and other minerals for sixty ores for many years, the vegetation has decreased, the mountains are exposed, and the environment is very poor. The county is just below the mining area, and the sky is covered with a layer of gray.

Due to the city's financial subsidies, the streets in Xiling County are still quite decorated.

If Xucheng wants to develop, Xiling’s environment needs to be improved, and if the environmental debt needs to be paid, it will become a huge burden for Xiling Iron Mine.

Rongxin regards Xiling Iron Mine as a useless rib. It is not difficult to understand if it does not include it in Rongxin’s steel industry system.

"Rongxin may have regarded Xiling as a useless rib to throw it away, or it may have retreated to advance, but no matter what their intentions are, we will not give up the initiative; Huaimei will also take over, how about it?" Chen Huai pulled Sun Fujing to stand on the mine, looking at the county town at the foot of the mountain, smoking a cigarette and talking about the future of Xiling Iron Mine.

Huaimei has had serious redundant staff in the past, and streamlining employees is extremely difficult. As a state-owned enterprise, there must be social responsibilities. In the past few years, Huaimei has doubled its coal mining capacity, and on the other hand, it has built more coal washing, coking and other related factories to divert the original employees, which has enabled the per capita coal mining volume to increase the international average level. In this process, the renewal and replacement of mining equipment has been completed, and profitability has been enhanced.

According to the development plans and environmental requirements of the province and Xu City, Xiling will not only not expand its production capacity in the future, but also eliminate and shut down some small mines with a huge impact on the environment. Xiling Iron Mine needs to update its equipment and almost simplify eight or nine out of ten employees before it can be reborn.

Sun Fujing believes that this is possible when Rongxin takes retreat to advance.

The outdated and backward mining equipment of Xiling iron ore is not a big problem. You can increase investment in Taobao and exchange equipment. With the future increase in iron ore prices, there are still expectations for profits, and the more troublesome thing is the redundant staff.

If so many employees cannot be cleared out, they have something to do and cannot be futile to support them, and they cannot update their mining equipment with higher automation. The production efficiency of Xiling Iron Mine will always fall at the level of the industry, and there may be no chance of profitability.

The reform plan led by Rongxin seems to be to take over the steelmaking assets of Shenggang, and throw the burden of Xiling Iron Mine to the province. If the province does not have the confidence to deal with the problem of Xiling Iron Mine and to package the steelmaking assets of Shenggang, then it will inevitably have to accept Rongxin's strict liquidation plan for Xiling Iron Mine. The provinces, cities and Xiling County must endorse the responsibility for the riots that may be caused by the liquidation plan.

There are no factories in Xiling, and nearly 20,000 mining workers will be cleared out at once. Isn’t the small county town still a mess?

If it is not cleared, even if there is a prospect of a sharp increase in iron ore prices in the future, Xiling Iron ore will be a huge burden, with too many employees, and the mining equipment is backward and cannot be updated and replaced, so there is no development prospect.

In the process of reforming the provincial steel industry, this looks like an unsolvable deadlock.

Sun Fujing didn't know how Chen Huai wanted to capture the initiative from Rongxin Group. Why did Rongxin Group regard it as a useless thing? It would no longer be a problem in Chen Huai's hands.

"Changqing Group is optimistic about the future growth prospects of the iron ore market. It acquires several iron ore companies overseas. Xiling can set up a labor service company to export the excess employees overseas," Chen Huai saw that Sun Fujing had some expectations in his eyes and continued, "Huai Coal will also leave Huaixi sooner or later. It is better to leave early than to leave late."

Chen Huai had no intention of obstructing the comprehensive reform plan of the provincial steel industry led by Rongxin. Even without Rongxin, Meigang still faced competition from several other major steel companies in China, and there were not many Durongxin.

Rongxin wants to take control of the Steel Corporation, but its current vision is still on the expansion of steelmaking scale, so it also regards Xiling Iron Ore as a useless rib - Chen Huai wants to eat Xiling Iron Ore with relish.

Since 1997, Changqing Group has acquired Thailand's iron ore companies, and in recent years, it has focused on Australia and Africa, where iron ore resources are richer.

Although Australia has richer iron ore resources, Chen Huai advocates Changqing Group to be placed in Africa, especially in East Africa. Australia has extremely strict restrictions on labor imports, and Africa is the paradise for Chinese companies to export labor - and China's high-quality and low-priced labor resources are now the real gold mine.

Meigang is listed in London as a whole. It is enough to raise 3 billion yuan of funds and some bank loans to be used for the construction of Xinpu Steel Phase II project. There is no rush to pay dividends after accumulating nearly 2 billion yuan in profits every year. Now it has the ability to enter the overseas iron ore market with Changqing Group.

Although Huaixi City currently has proven reserves of more than 30 billion tons of coal, mining is difficult and easy, and the cost is high and low. According to the planning of the province and Huaixi City, the annual coal mining volume in Huaixi City will reach about 120 million tons in the future, which will limit further growth.

Orderly exploiting resources should prevent premature depletion of regional resources.

After years of development, the annual coal mining volume in Huaixi City has exceeded 60 million tons, and Huai coal accounts for nearly half. Even if Huai coal accounts for the proportion of Huaixi coal in Huaixi's coal mining industry in the future, the actual development potential is limited.

Huai Coal needs to develop more and sooner or later go out of Huaixi.

Going to other provinces and overseas mining of coal and other mineral resources is the path that Huai Coal is suitable for leveraging its own advantages.

Therefore, this time the provincial steel reform is a useless steel company. Chen Huai still hopes that Huai Coal will take over with Meigang and Changqing Group to give full play to its greater advantages; Huai Coal will develop into a comprehensive large mineral group in the future, not just limited to coal.
Chapter completed!