The relocation has enormous impact on the allocation of China's
steel industry. The Shougang Group has relocated its business along
coastal areas, causing Shougang to play an exemplary role in
further optimizing the structure of the steel industry and
improving their competitiveness. All previous Chinese steel
enterprises were located inland or even in central cities. The
Shougang Group's removal is a challenge and opportunity for the
company and by taking a leading role it positively influences the
national steel industry.
Zhu said that the Shougang Group is also carrying out strategic
restructuring during its relocation.
"First, the Shougang Group seeks to attain the most advanced
technologies in the world by relocating at a new level, a big
structural readjustment. This readjustment not only involves domain
structure, products structure, technology structure and equipment
structure, but also requires a fundamental change of the
organizational structure of the company. Our business management is
completely based on new types of organizations. Information
technology and automation technology have been introduced. They
combined closely with the modern management framework in the
beginning of our structure readjustment because we are aiming at
real advanced management," Zhu explained.
In addition, Shougang's newly established steel factory will
focus on high-end products, another kind of structural
readjustment. We will not only set up the most advanced steel
factory in the 21st century, but we are also working on planning
bases in the Shijingshan District in Beijing, involving technology
research and development, cultural creations including exhibition
industry, modern business and entertainment. Located in the
connecting areas of three districts in Beijing, these bases will
greatly promote the development of the Shijingshan District, the
Mentougou District and the Fengtai District, thus realizing a
fundamental change of the industrial structures of older factory
areas.
Third, the Shougang Group is also transforming its other
industries at the same time. Property rights reform has introduced
new commercial infrastructures inside real estate and construction
companies, mechanical and electrical manufacturing and other modern
services in Beijing. We will reorganize our enterprise systems to
build the most modern-corporate systems.
The competitiveness of Shougang's subsidiary industries has been
greatly improved. Instead of shrinking during our relocation these
industries are also experiencing a structural transformation. In
addition, the management framework of the whole group is also being
reorganized on the basis of new demands for competition and
efficiency.
The knowledge structure and labor force structure regarding
employees has improved, Zhu added. Shougang has made great efforts
to train our employees in recent years. The Shougang Group recruits
more than 1,000 employees from college graduates and candidates
with work experience every year. 1,300 graduates have been
recruited this year, including more than 70 postgraduates. Now the
group has more than 80 employees with doctoral degrees and more
than 1,000 employees holding master's degrees.
The quality of Shougang staff has been enhanced. Some employees
have passed their performance evaluations through training. The
cultural structure, skill structure and the structure of our labor
organization is all changing. The entire company, not just steel
production, is in transition.
(China.org.cn by Yang Xi, October 24, 2007)
