Steel industry cuts pipe capacity for development

Over the past three years, hesteel, the industry leader, has actively responded to the call to cut its production capacity by cutting 3.46 million tons of galvanized steel pipe and 5.02 million tons of steel production capacity, equivalent to a tenth of the original production capacity. After decades of development, the steel industry has completed the accumulation of scale, while the reduction of capacity has ushered in the transformation of the whole industry from the pursuit of scale to the pursuit of quality, structure and products. In the stage of large-scale development, as long as the steel output to sell, enterprises focus more on cost, efficiency, and the market. Customer attention is not much and competition of steel pipe industry is more fierce.

We have to look at the market and force ourselves to transform and upgrade by targeting high-end demand and adjusting our customer mix. Make up your mind to subtract and leave no stone unturned to add. In order to seize the middle and high-end market, hesteel focuses on talent introduction and innovation, channel expansion and brand building. In 2015, hesteel took a controlling stake in structural steel pipe, opening up the channel to enter the market of high-end steel for home appliances. They also cooperate with top international automobile manufacturers such as BMW to make deep efforts in the market of automobile plate, and gradually realize the leap of automobile steel products from single product to product series, from ordinary steel grade to super high strength steel grade.

The transformation and upgrading of the steel industry is just beginning. In the future, the application of smart manufacturing and other new technologies will profoundly change the whole industry. We believe that intelligent manufacturing of rectangular hollow section can not only overcome the shortcomings of excessive human factors in the past production so that the product quality is higher and the performance is better, but also enable the production line and the downstream enterprises and even end users to connect as one, to meet the customer’s personalized, customized needs, to create a variety of new possibilities. He described such a scene to the reporter: in the future, the end user sends a family group photo to the home appliance manufacturer with the mobile phone; the steel pipe suppliers can paint the group photo to the surface of the customized home appliance in the production process of the electric board at home and the production of the whole assembly line does not have to stop.