CAEM 3Is in 2003

CAEM 3Is Action in Wuhan Iron and Steel Group Corp

The CAEM 3Is action in Wuhan Iron and Steel Group Corp (WISGC) started on July 13, 2003 and ended on July 17. Vice-President Wang Dianzuo and other six CAE members as well as eight invited experts took part in the activity. Secretary of Hubei Provincial Party Committee Yu Zhengsheng and Governor Luo Qingquan met with the CAE members and experts. The leaders and experts of the relevant departments were also invited to participate in the activity.

At the beginning, the CAE members and experts listened to the keynote report on the development program of the WISGC during the 10th Five-Year Plan period by Liu Benren, chairman of the board of directors and general manager, and some specified reports from the subordinate departments of the WISGC, then visited S&T Hall, workshops of steel making and rolling as well as a silicon steel plant. Several CAE members, namely Yin Ruiyu, Zhang Shourong, Lu Zhongwu and Chen Xiansen, made academic speeches at the meeting, respectively. Some other CAE members and experts delivered written reports.

The followings are the details of their suggestions and opinions.

(I)Readjusting and optimizing the structures of products:

1. The enterprise s development strategy for building an auto s steel slabs base and a cold-rolled silicon steel plates base in China is not only the key point and orientation of the readjustment of the variety structure, but also the guiding strategy for enterprises investment and development.

2. Silicon steel plates have always been the most important products of the WISGC, taking the lead in the country. The WISGC should expand its production capacity and output as soon as possible, and develop high-class products to meet the demands at the domestic market.

3. The WISGC should increase the proportion of the deep-processing products, such as raising the percentage of cold-rolled products.

(II) About clean production and sustainable development

1) It is suggested that WISGC learn experiences from Japan and Baoshan Steel Corp to exploit mines in cooperate with foreign enterprises or with foreign investments, and invest a certain amount of capital to guarantee the stable supply of ores.

2) Carrying out systematic high-quality raw materials and optimizing the furnace structure of raw material feeding. It is suggested developing pellet at the ratio of 30% more or less, and building the pellet plant near the mine.

3) Taking the concept of the circulating economy with regard to the environment improvement, energy saving and consumption reduction, and understanding well the flows of iron, carbon, heat energy, electricity and water and their relationship. It is suggested cutting down the consumption of fresh water from 10m³/t of steel to less than 8 m³/t before 2005.

CAE Members Make an On-the-Spot Inspection in Zhejiang Province

President Xu Kuangdi of the CAE, led a team of some CAE members, namely Zhu Gaofeng, Wu Hequan, Hou Yuande, Lu Jianxun, Yao Fusheng, Zhou Qinzhi, Wu Cheng, Li Deyi, Ni Guangnan and Zhou Xiang to carry out the CAEM 3Is in ZhejiangProvince. They made an on-the-spot investigation and study of enterprises, technology centers and development zones in Wenzhou, Taizhou, Ningbo, Shaoxing and Hangzhou.

At the end of this investigation and study, President Xu and his team had a conference with the leaders of ZhejiangProvince and some related departments and local officials. Xi Jinping, secretary of the Zhejiang Provincial Party Committee, presided over the meeting, and Governor L Zushan gave a brief introduction to the building of an advanced manufacturing industry base in Zhejiang.

President Xu voiced three opinions on the study and raised one suggestion as follows:

1.As for building an advanced manufacturing industry base, Zhejiang should, on the one hand, cultivate and support some manufacturing industries incubated by hi-tech industrialization, including IT with microelectronics and fiber electronics as the mainstay, biomedicines and biotechnological industries with gene and bioengineering as the centers, and special precision manufacturing industries led by nanometer technology. On the other hand, all trades and professions of Zhejiang should spare no effort to develop and apply high technology.

2.Zhejiang has laid a good foundation for building an advanced manufacturing industry base. First, it has become one of the driving forces for Zhejiang s economic development in the recent years. Second, manufacturing industry has begun to take shape, and has formed the professional processing ability of producing series of products. Third, Zhejiang s manufacturing industry has promoted the immigration of the labor force and urbanization. Fourth, Zhejiang does not have any systemic obstacle for the development of manufacturing industry. Last but not the least, Zhejiang has entered the international market, and almost all the large groups of manufacturing industry are aimed at marching toward the world.

3.Zhejiang has its unique characteristics in building itself an advanced manufacturing industry base. First, Zhejiang has developed IT to promote industrialization so as to upgrade traditional industries and build an advanced manufacturing industry base. Second, Zhejiang has formed a comparatively complete manufacturing chain through taking trade associations or large and leading enterprises as its core to united the enterprises of different kinds of ownership. Third, Zhejiang takes the advanced international level as the target, and actively participates in competitions at the international market.

President Xu put forward a suggestion that the development of manufacturing industry in Zhejiang should include hi-tech industries like IT, biomedicines industry, new materials and traditional heavy chemical industry, which is the source of original manufacturing industry. Moreover, he hopes that Zhejiang s manufacturing industry will make great efforts to produce high-quality products with advanced technologies, rather than pursue the enlargement of the size only.

Other CAE members also devoted some suggestions that meet the reality for the development of manufacturing industries in Zhejiang.