Belt And Road National Key Project Indonesia Dexin Steel Is Put Into Full Production

It was learned from Delong Group that on March 29, 2020, the first molten iron of Indonesia's Dexin Iron and Steel Blast Furnace was poured into the ladle; on March 31, the converter was officially opened for production. The first molten steel was successfully smelted at 9:18 on the same day. The continuous casting of the billet in the eight-stage billet is smooth, marking that Indonesia Dexin Iron and Steel has achieved the full process of sintering, ironmaking, steelmaking and steel rolling in the factory and put it into production.

In the background of the “Belt and Road” era of Dexin Iron and Steel's first furnace for molten steel, Ding Liguo, chairman of Delong Group, actively responded to the national call to plan the steel industry to go out. "As an advantageous industry, China's steel industry has the strength to go global. The state has vigorously called for the coordinated development of the'Belt and Road' initiative. China's steel industry has the environmental conditions to go global. What's more important for the private economy to go global is confidence.

Ding Liguo pointed out: "Going out" has huge benefits for China's private economy and China's participation in globalization. Under the guidance of the country's "Belt and Road" initiative, private enterprises should take the lead in trying and practicing to cultivate more Chinese enterprises with international competitiveness. "In 2012, Delong Group established a dedicated overseas business department to actively look for overseas factory construction and cooperation opportunities.

Ding Liguo himself and his team began to investigate the world, as far as Africa, and finally considered Southeast Asia to be the next most economical One of the active regions. Because 11 countries in Southeast Asia, with a population of 600 million, annual production of more than 30 million tons of steel, more than 90 million tons of demand, there is huge market demand. The economy has maintained strong growth in the past decade One of the few regions where crude steel consumption continues to grow rapidly.

Indonesia is located in southeastern Asia. The economy started late, the steel industry has not developed domestically, and market demand has grown strongly. According to official Indonesian data, steel consumption reached 15.1 million tons in 2018, an increase of 10.96% over 2017; Indonesia’s steel consumption is expected to exceed 22 million tons in 2021, with a compound annual growth rate of more than 10%. The Indonesian government has given strong policy support to the Qingshan Park where DXN is located.

On October 16, 2018, the Indonesian Minister of Finance approved DXN's corporate income tax relief application, giving the most preferential policies. DXN's advanced steel equipment, coupled with the advantages of exporting technology, management, and talent from the country, its products have a high cost performance, which can attract more Indonesian steel distributors to pay attention to Indonesia's national standard products, and promote the Indonesian steel market to gradually eliminate backward non-standard products. Steel, guide the standardized development of the Indonesian steel market. At the same time, the factory is located in the port, which has inherent cost advantages.

After the first phase of Indonesia's Dexin Iron and Steel Project is put into production, it can produce 3.5 million tons of steel per year. It is expected to realize an output value of 14 billion yuan and a profit and tax of 1.7 billion yuan. The project will drive more than 4,000 Indonesian employees to work in factories, while also providing tens of thousands of jobs for upstream, midstream and downstream industries.

In the two years of construction of the project, it has driven the export of China's domestic related complete equipment to 6 billion yuan. After the project is put into production, it will drive the export of China's domestic related equipment and parts to 600 million yuan every year. The completion and commissioning of Indonesia's DXN Steel has gathered the strength, wisdom and support of all parties. Indonesia has a special geographical location, with a typical tropical rainforest climate.

The rainy season is eight months a year. The geological soil is loose. The island lacks equipment and other materials. The construction conditions are extremely difficult. The project is also affected by the new coronary pneumonia epidemic. MCC Southern and Sinosteel have overcome many difficulties and ensured the continuous progress of the project construction under various difficult circumstances.

The Dexin Steel project has been signed since June 2017, and construction began in April 2018. General manager Bao Jianhua and deputy general managers Zhao Duizhang, Wang Sanbo, Zhang Fushan, etc. have been on the island since the project construction.

In two years, there have been few reunions. DXN people just spent more than two years to build a standardized, standardized and modernized steel plant on an undeveloped muddy jungle. In the early stage of construction, DXN started early employee system training; language barriers also became the most difficult. Indonesian employees did not have heavy industry experience.

Through the company's increased training, domestic employees can now communicate in simple Indonesian language, and Indonesian employees are proficient in technology Operating standards. Leading service enterprises of government departments and financial institutions at all levels of the country “go global”.

During the overseas investment process of Delong Iron and Steel, relevant government departments at various levels such as business, development and reform, and foreign management provide enterprises with opportunities to understand Indonesia’s macroeconomic conditions, social environment, investment policies, key industrial directions, and investment opportunities.

Enterprises enter the Indonesian market to create conditions; at the same time help companies seriously study the situation of the Dexin project in terms of capital, technology, talents, feasibility, investment environment analysis and evaluation, and help enterprise project filing and project implementation as soon as possible; CITIC, Minsheng Bank Other financial institutions have provided capital guarantees for the Indonesian Dexin project.