[Ferro-Alloys.com] 

  More than a month ago, that is, on December 23, 2020, China Baowu Iron and Steel Group Co., Ltd. announced in Shanghai that it would achieve a historic breakthrough of over 100 million tons of steel per year. Recently, Chen Derong, member of the Standing Committee of the Shanghai Municipal Committee of the Chinese people's Political Consultative Conference, Secretary of the Baowu Party committee and chairman of the board of directors, received an exclusive interview to talk about "100 million tons of Baowu wins the world's top steel enterprises" and how Baowu of China can start the new journey of the "14th five year plan" by continuously deepening reform.

  Reporter: In 2020, during the coronavirus pandemic, although the global and Chinese economy was affected, Bao Wu still created a "miracle" of achieving 1 million tons of output. What do you think is the main reason for the achievement?

  Chen Derong: I don't think this is a miraculous achievement. Because China's steel production in 2020 is expected to reach a historic amount of 1.05 billion tons. On the basis of such a total amount of iron and steel, in 2020, China Baowu, as the leader of the industry, will take the lead in exceeding 100 million tons of output. It is precisely based on the high quality and rapid development of China's national economy in the past decades of reform and opening up that Baowu can achieve such a milestone of 100 million tons of output.

  First of all, the rapid improvement of China's national comprehensive strength and the continuous improvement of people's living standards have a huge demand for steel, which has promoted the rapid development of the steel industry. It is the great rejuvenation of the Chinese nation and the strong momentum of China's development that support the development of Baowu.

  Secondly, China's modern industry used to be very weak. It is the unremitting efforts of people in the past 100 years that have accumulated a strong system, whether in technology, talent, brand, credit, capital and etc.

  Therefore, this is not only due to Baowu's own efforts, but also related to the development of objective foundation and conditions. It is inevitable for Baowu to take the lead in achieving a breakthrough of 100 million tons. We also hope and believe that there will be a number of other enterprises in the future that can also achieve the goal of annual output of 100 million tons, and we are also looking forward to it.

  Reporter: in the context of the reform of state-owned enterprises, looking back to 2020, what aspects of innovation and breakthroughs have we made, and how can we support enterprises to forge ahead even during the epidemic period?

  Chen Derong: we are promoting the innovation of business model. Based on dual-circulation, as the basic raw material industry, iron and steel involves many industries and has a long industrial chain. In the past, we were mainly engaged in a single steel business. As far as dual-circulation is concerned, we should take steel as the main business, combine it with new material industry, intelligent service industry, resource and environment industry, industrial park industry and industrial finance industry, and then form an "ecosystem" business model based on steel and coordinated development of other five industries.

  Reporter: Baowu hopes to become a sci-tech enterprise. In recent years, what specific measures have we taken and what new breakthroughs have been achieved in the application of new sci-tech, or in intelligent production, development and promotion?

  Chen Derong: First of all, in terms of industry integration, we still need to rely on sci-tech innovation to give birth to a greater leading role. Secondly, as a state-owned enterprise, we should promote greater innovation in the system and mechanism. Thirdly, in the context of "dual circulation", there should be a greater breakthrough in the business model. Fourthly, we can achieve the best allocation of resources through international development. Fifthly, in recent years, the scale of assets has been enlarged through rapid combination, but the efficiency of asset allocation can be further improved by optimizing internal management.

• [Editor:Catherine Ren]