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Baosteel Adopts Reform to Cope with Competition

Baosteel Adopts Reform to Cope with Competition

Write: Zedekiah [2011-05-20]

On January 21 and 22, management seminar was held at Baosteel Co.,Ltd. focusing on the deployment of this year's priorities. The meeting called for managers at all levels to conscientiously implement the spirits of Baosteel Group 2011 annual conference and the fifth session of the third Baosteel employee congress. The meeting called that managers should do self-reflection, face their shortcomings and solve the problems and that they should extend views, plan systematically and respond to competition with reform.

Xu Lejiang, Liu Guosheng, He Wenbo, Ma Guoqiang, Zhao Zhouli, Zhu Chunsheng, Jiang Licheng, Chen Ying, Lou Dingbo, Pang Yuanlin, Zhou Jianfeng , Wang Jing, Lu Rong and Lin'an attended the meeting. Baosteel vice general manager Li Yongxiang chaired the meeting.

Last year, Baosteel overcame the new production line putting into production, cost inflation and other unfavorable factors, seized market opportunities, expanded market and ensured that steel production capacity was maximized, resource flow was optimized and cost improvement was stabilized. The enterprise's benefits went up sharply, operation results exceeded the annual target and it maintained the best position within the domestic industry.

This year, with "product management, cost improvement, meeting new competition requirements, capacity building, environmental management and creating new competitive advantages" as the general operation principle, Baosteel will continue to focus on capacity building, carry out the work, and strive to scale most excellent performance within the industry.

At the meeting, Baosteel deputy general manager Chen Ying, Zhou Jianfeng, Wang Jing, Baosteel assistant general manager Wang Liqun and Feng Taiguo made special reports and deployed work on cost, marketing, purchasing and manufacturing. The participants also had discussion concerning the measures taken to keep company's performance at the best level within the industry, effective coordination and mutual support among businesses within the enterprise.

They all agreed to enhance confidence, to make efforts in improving the quality and service and strengthening management, to strengthen the field capacity and to perform well when faced with market challenges.

Baosteel deputy Party secretary Chun Junsheng requested at the meeting that we should enhance security system, ensure site production safety and carry out targeted training to enhance staff's substantive capacity, that grass-root Party branches should play an active role in team building and basic management and that we should boost "three systems" reform and take measures particularly in improving labor efficiency and retaining key personnel.

Baosteel Group Corporation deputy general manager and Baosteel Co.,Ltd. Party committee member Zhao Zhouli introduced briefly to the participants the situation in Zhanjiang project. He pointed out that Baosteel Zhanjiang project was an important strategic deployment in Baosteel's new round of development and an important stage to show the wisdom and ability of Baosteel. He hoped that managers at all levels would support the Zhanjiang project with entrepreneurial passion.

Baosteel General Manager Ma Guoqiang pointed out that managers at all levels should recognize the seriousness of the situation in this year's business, keep a clear mind, face work deficiencies, strive to overcome the difficulties, pursue the steady growth of sustainable profits and accomplish all the business tasks of this year with the best performance within the domestic industry as a starting point.

"For product business, we must strive to maintain steel production maximization and optimize reasonable resource flow. As for product quality, technical service, product development and other aspects we aim at the pursuit of difference, turning the needs of customers into production capacity as soon as possible and seizing market opportunities.

For cost improvement, we should focus on cost reduction in procurement, logistics, management, technology, cost control and project investment. For management at the grassroot level, we shall ensure that every system and measure be implemented at the grassroot level.

Baosteel Group Corporation general manager, Baosteel Co.,Ltd. chairman and Party secretary He Wenbo stressed at the meeting that "the development of service-first manufacturing industry and establishment of customer-centred enterprise operating mechanism" should not be limited within the concept. It should be specific and bear results.

"Managers at all levels and functional department heads should change their thinking, improve work methods, organize a special team to do in-depth and thorough assessment on the current operating system, clarify responsibilities and division of labor and produce corresponding work plan. Functional departments should have professional training to enhance their professional capabilities and let resource advantages into full play.

Planning on staff income and welfare growth should be made and be included in the management. Managers should carry in-depth study on the working methods and lead the staff to do even better.

Baosteel Group vice chairman and Party secretary Liu Guosheng said at the meeting that faced with complex macro-economic situation and the intense homogenized competition in the steel industry, Baosteel had more arduous management task. "Currently, the enterprise faces the problem of service transformation.

To develop the ervice-first manufacturing industry, we should turn management reform to the direction of user-centred and market-driven direction. We should further strengthen the grass-root management and constantly deepen the accident handling methods, the work station director system and other basic management system.

We should continue site improvement. The Party organization should actively carry out emulation activities, create value and play a catalytic role in the management. Managers should set an example, pay attention to working method, be a smart leader, and lead the staff to make contributions to a stronger and better Baosteel.

Baosteel Chairman Xu Lejiang fully affirmed the excellent performance achieved last year and thanked the Baosteel cadres and staff for their hard work. He pointed out that Baosteel had withstood the test of the international financial crisis and proved through their own efforts that the realistic attitude, facing shortcomings and solving the problem was the right path. He hoped Baosteel Co.,Ltd. to continue to create such an atmosphere: be self-reflective, solve system problems, and continuously improve research capacity. "In response to market changes, there must be clear planning objectives and specific measures. We should address the issue with system planning and improve responding ability. That's the only way to deal with more intense competitions. Managers should be forward-thinking and have long-term vision. They should go all out to lead the team and respond to market competition with reform ."