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How to make iron and steel industry overcapacity vista

"Made in China 2025" and the German "Industry 4.0" butt, is go to the capacity of the steel industry, will bring what kind of impact? Those enormous pressure steel companies will therefore "way out" do?
Recently, the Sino-German cooperation in intelligent manufacturing pilot projects exchange of experience will be held in Shanghai Lingang. The first 14 German pilot projects of intelligent manufacturing cooperation officially announced. Shanghai region, "Sino-German cooperation in intelligent manufacturing Lingang comprehensive demonstration area pilot demonstration" and "Baosteel and Siemens joint exploration of the steel industry 4.0 Industry pilot demonstration" two projects were selected.
Baosteel is concerned, a major goal of the partnership, in addition to the China Galvanized Corrugated Roof Sheet manufacturing industry to provide wisdom and experience to implement the reference line, the more important is the formation of the business model to other business and industry promotion.
In the experience exchange meeting, Baosteel Group Senior Managers Limited operational improvements Ministry Shen Liming said, "Baosteel and Siemens joint exploratory steel industry, Industry 4.0," the short-term goal is to complete the "1580 Hot-rolled Smart workshop" (State Ministry Intelligent Manufacturing pilot project), the medium-term goal is to establish a framework of steel industry 4.0 industry in 2017 to help carry out the plan, Baosteel industry 4.0 program. The long-term goal is to establish both industry alliance to outside Baosteel Group, a number of other industrial and commercial sectors output mode 4.0.
In the first half of this year, Baosteel Group chairman Xu Le Jiang during his visit Siemens said the current China, Europe and the world steel industry, the situation is very grim and full of variables, both sides should take advantage of the Internet era German "Industry 4.0" and "Made in China 2025" in strategic opportunity to jointly develop new business models. And China's steel production capacity of more than 800 million tons, the market has great potential, Baosteel and Siemens cooperate to explore new manufacturing model, business model even more essential.
"China 2025" and the German "Industry 4.0" cooperation has long docking origin. April 2013, the German government officially launched the "Industry 4.0" strategy. May 2015, the State Council issued the "Made in China 2025", deployed to Promote manufacturing power strategy. In October, when Merkel's visit to China, China and Germany announced that it would promote "Made in China 2025" and the German "Industry 4.0" strategy docking, and jointly promote the new industrial revolution and formats.
By 2015, Baosteel and Siemens to establish a joint working group to jointly promote the "Baosteel Siemens Joint Exploration Industry 4.0 project."
June 13, 2016, Sino-German Council of Economic Advisers third plenary meeting held in Beijing, under the witness of Chinese Premier Li Keqiang and German Chancellor Angela Merkel, Chen Derong, general manager of Baosteel Group and Siemens AG President and CEO Kay SA on behalf of both companies signed the "wisdom Baosteel and Siemens manufacturing (industry 4.0) strategic agreement."
Baoshan Iron and Steel Industry 4.0 How to implement the project?
Shen Li Ming said the situation now facing the steel industry, one of excess capacity, excess capacity and gradually extended to high-end direction. Second, the steel industry, the most recent increase in the export trade friction, making exports difficult. Third, China's economic growth rate down, so that the slowdown in steel demand. Coupled with the reduction of the workforce, rising labor costs, including the upgrading of environmental requirements for the development of the steel industry has a tremendous pressure.
In 1996, China's crude steel production exceeded 100 million tons, from the global steel industry, opened a "China era." Over the past 20 years, China contributed 80 percent of global crude steel increment.
However, the "excess capacity" to highlight the representation of China's steel industry structural imbalance contradictions and the outbreak in 2015, 101 domestic and medium-sized steel enterprises a loss rate of 50.5%.
In early 2016, China launched the production target to go - with a 5-year period to resolve the overcapacity of steel 100 million to 1.5 million tons. According to the Ministry and the National Development and Reform Commission data, the first half of this year, the amount of China's steel production capacity to reach more than 1300 tons, is about 30% of this year's objectives and tasks. Steel Association Member and medium-sized steel enterprises realized profits of 12.59 billion yuan in the first half, an increase of 427.3 percent, but still amounted to a loss of 26.3%.
Shen Li Ming said that the steel industry is the level of quality is not very stable, integrated iron and steel industry, scrap rate, Baosteel is also a 5% -6%, high-end products such as automotive sheet, finished product rate is generally about 85%. High-grade silicon steel can not under contract to organize production, and then it came out after only yield grading and delivery according to customer requirements.
As another example, the customer demand for personalized products, but also Forced steel industry production patterns change. For fast response to user, it is a competitive industry.
Ninth China International Steel Congress held in May this year, Chen Derong said that during the "Thirteen Five" is a critical period of China's steel industry restructuring. Rebalancing is the essence of the transformation to market-oriented, from the supply side to meet the steel consumption personalized, precise requirements. China's steel industry restructuring is not simply to produce energy, but must be combined and technological progress to improve the proportion of high value-added products, improve production efficiency and flexibility through intensification and specialization to achieve matching of supply and demand structure.
"We are also actively looking for the path of the steel industry restructuring, the development prospects of manufacturing wisdom and potential benefits, and steel industries as well as to solve the problem is the same." Shen Li Ming said. By 2015, annual sales of Baosteel commodity billets 22.1483 million tons, achieved total revenue of 164.12 billion yuan, total profit of 1.85 billion yuan, operating profit of listed companies in the domestic steel industry to maintain optimum.
Conception Baosteel, is to establish a fully transparent digital mills, gradually building a parallel reality consistent virtual factory in the digital space, fast response and meet the individual needs and to deliver high quality products manufacturing model.
Thus, the response from the business operations into a prediction Manufacturing Manufacturing; optimize the transition from local to global optimization; the matter in advance after the change of management in the factory manufacturing process, and ultimately flexible manufacturing.
According to the plan, the wisdom of manufacturing Baosteel will be divided into 3 + 1 mode, intelligent equipment, intelligent factories, intelligent network, coupled with the infrastructure.
In terms of intelligence equipment, "We chose to set a range, we '3D' job is dangerous, dirty, repetitive jobs we use robots to replace." Shen Li Ming said.
Shen Li confessed, automation, information technology, network level steel industry substantially all of the equipment compared to other traditional manufacturing industry is relatively high, the current level of automation equipment main steel industry reached more than 98% automation control. But a lot of logistics automation level jobs is not high, so in the wisdom of Baosteel manufacturing planning, there is a considerable number of industrial automation is 2.0 initiatives to be implemented.
In the smart factory, including real-time process control, equipment maintenance, logistics management, the refinement of cost management, there is a lot of space on personnel management; the user in terms of interoperability, interconnection between with a large number of suppliers initiatives to do.
This 3 + 1 level, Baosteel and Siemens formed a total of 12 teams to carry out the work. Among them, the "Smart 1580 hot rolling plant demonstration pilot" will carry out eight areas, including sensors and detection technology, diagnostic and monitoring equipment, digital factory building. "After completion of our entire 1580 workshop either from the level of quality, fully automated level, labor efficiency levels above can get a big step forward in the international arena has become a more representative hot intelligence space."
Recently, Baosteel 1580 hot rolling workshop, Transforming Smart officially launched, the project is scheduled for completion by 2017. Baosteel 1580 production line put into operation in the 1990s, annual output of 4 million tons of hot-rolled coil. The production line automation, information technology and better foundation. However, compared with world-class advanced level, production line automation rate, product quality and consumption of key indicators, there are still some gaps, with some transformation space. After the project is completed in 1580 intelligent energy efficiency workshop, automatic rolling rate, labor efficiency will increase, respectively, 5%, 6% and 10%, the cost decreased by 20%, steel manufacturing will be more secure, efficient and environmentally friendly.
"We are with Siemens cooperation, the troubled steel industry restructuring has a model that can provide directions and experience with reference to the wisdom of manufacture implemented for the steel industry, we are confident to conduct quality and efficiency, the construction of a new age sense digital factory, Sino-German cooperation to create a template. "Shen Li Ming said.

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