Last year, adhering to the operating principle "quick profits", Baosteel Stainless Steel Besiness Unit raised its economic and technical indicators, improved operating performance and for the first time in three years achieved full range profits in carbon steel and stainless steel.
Faced with the changing market, Stainless Steel Besiness Unit adheres to "market-oriented and customer-oriented" business philosophy and it sold 1.32 million tons of stainless steel last year. Among them, the sales of stainless steel unique leading products occupies 115% of the annual goal. Through detailed analysis of product profitability, improving the internal supply of carbon steel material, the proportion of automobile steel orders and dynamic adjustment of the commercial resources, Stainless Steel Besiness Unit optimized the product structure and improved species competitiveness and profitability.
For the domestic market, Stainless Steel Besiness Unit further optimized the network layout of stainless steel and built initially three industry & trade integration platform which solely sold stainless steel and which were close to the major market, an exclusive stainless steel trading company, five regional companies and two non-exclusive processing centers' sales network.
For the international market, it innovated overseas pricing models and developed a number of new export customers in Korea, Vietnam, Spain and the Netherlands, with stainless steel product exports reaching 169,000 tons, covering 109% of the export sales annual target. Meanwhile, Stainless Steel Besiness Unit made new breakthroughs in major domestic projects' material and special material supply.
B445R ultra-purity ferritic corrosion-resistant steel was successfully applied to the construction of Guangzhou Asian Games venue and gained certification from the Ministry of Railways in steel used for railway wagons and achieved larger volume stable supply.
Catering to the characteristics of volatility in stainless steel raw material market, last year, the Department strengthened the work on marketing research and judgement, tried to achieve efficiency, implemented strategic sourcing and made significant economic benefits.
Last year, Stainless Steel Besiness Unit focused more on the internal operation process, as well as the improvement and upgrading of major economic and technical indicators in key processes and started the core work of Six Sigma organization. 30 items of process improvement were established during the year and 56 Six Sigma projects were formed. Up to now, 25 topics were completed, covering 115% of the annual target. Meanwhile, the 121 site cost and economic and technical indicators which Stainless Steel Besiness Unit tracked closely kept on improveing for totally 148 times. As for manufacturing cost improvement, the gap between the cost of molten iron and carbon steel hot rolled coil and stainless steel cold rolling follow-up work process and the cost in directly linked factory and Ningbo Steel were significantly reduced. The critical quality defect control level was also significantly improved.
