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Chapter 735: Stirring the Pool

Meigang leads the steel logistics and processing park project to build Shimen. At present, in all aspects, the conditions are far from mature.

After the completion of Xinpu Steel Plant, Meigang has become one of the top ten steel joint enterprises in one fell swoop, and the crude steel output will stabilize next year between 5.5 million and 6 million tons.

After the steelmaking department is cut, its casting and other heavy industry departments in Liverpool, Birmingham and other places in the UK will not be transferred to China for the time being. The steel used for the blasting materials required will be mainly provided by Mei Steel. Due to the gap in steelmaking costs between the two places, Xi Wei Steel can save procurement costs, while Mei Steel can obtain higher export profits.

Through overseas distributors such as Feiqi Industrial, Meigang has formed a certain export of building materials steel to Western Europe, with high profits and will further expand exports to overseas regions such as Western Europe in the future.

In addition, Meigang is currently focusing on opening up markets along the Huaihai Bay and East China. Even if it wants to advance closely to its competitors, the first one is to suppress it. The markets in Shanxi, Hebei, Beijing and Tianjin are geographically far away from Huaihai, with high transportation costs and narrow market channels. Meigang currently focuses on small-scale penetration in these areas and has no plans to enter large-scale.

Shen Huai and Meigang's senior management have a clear understanding of this, and they also clearly hope that Yang Haipeng will come to Shimen to help bluff and stir up the stagnant pool, without intending to dominate the construction of Shimen Steel Logistics and Processing Park project.

Large steel companies such as Yangang and Luangang, which dominate the North China steel market such as Jinji City and Tianjin, may not be able to see through the background of Meigang and may not think so.

Meigang has become one of the top ten steel joint enterprises in China from an unknown local small steel enterprise. It took only four years to do so. This process has caused most companies in the industry to be dumbfounded and caught off guard.

If Meigang now announces that it will launch the second phase of the Xinpu Steel Plant project, although the industry will have some doubts, who dares to take it lightly?

There is no need for Meigang to announce anything. As long as it makes a big move into the North China steel market, it is destined to induce endless associations and suspicions in the industry.

In the past few years, the domestic steel market has a large demand gap, and everyone has lived a good life for several years. However, with the acceleration of investment and construction of steel industries in various places in the past two years and the reduction in market demand gap this year, the situation of the entire steel industry is far less optimistic than before.

If Meigang wants to launch a larger-scale Xinpu Steel Plant Phase II project, and will release the capacity of Xinpu Steel Plant Phase II, which may exceed 4 to 5 million tons, mainly to the North China market. If Yangang and Luangang, which survive on the North China market, have no reaction at all, it would be a hell of a loss.

********************** Cheng Wenguang regarded Shen Huai as his prospective son-in-law, and he was more casual with each other. At night, Ji Chengxi and Yu Wenfei came to their home for dinner. Cheng Wenguang still took the time to rush home to accompany him for dinner. Hearing the twists and turns behind the Shimen Steel Logistics and Processing Park project, Ji Chengxi slapped the table and shouted:

"This move is amazing! One move can stir up the whole situation."

Shen Huai smiled bitterly and glanced at Cheng Wenguang. He knew that this move was good, but Ji Chengxi was so excited that he applauded. It was obviously not just applauding, but Miao.

Ji Chengxi continued: "I have been to Qinghe for two years, and I have a personal experience of the severe imbalance between the north and the south and the south. There is a big port in the north, the second largest iron ore resource in the country, coal, and the heavy industrial foundation accumulated in the past century. All the conditions are superior to those in southern Hebei. Zhongyāng implemented a tax-sharing system. In order to protect the interests of local governments and a small number of people, he insisted on keeping the people. The part of the value-added tax given to the local government is also intercepted at the municipal level, and the provincial finance cannot get the share. This is called the lack of resources and industrial foundation in the central and southern Hebei region, while the financial support of the northern Hebei region is not available. However, the geographical connection between Jinzhong and southern Hebei region has been cut off from the two municipalities directly under the central government, Beijing and Tianjin, and cannot take advantage of the development of large regions, so the economy will naturally fall into a dead silence. It is not easy to stir up this situation. I think Uncle Cheng must have this problem, right?"

Cheng Wenguang smiled and said, "I have just arrived in Hebei Province for only two days, and I feel that I am not as deep as you."

Although this idea was discussed by Cheng Wenguang and Chen Huai, it was not easy for Ji Chengxi to make further statements at this time.

Ji Chengxi didn't go around in any circle, and knew that Chen Huai was very busy. He missed this exchange opportunity and didn't know how long it would take to see him again. He said, "In order to stir up the situation, Huai Neng is at the coal transportation terminal in Jihe. I think Mei Gang still needs to take over the procedures..."

Chen Huai glanced at Cheng Wenguang, wondering if he wanted to tell Ji Chengxi about Ye Xuanfeng's private contact with Sun Qiyi.

Ji Chengxi seemed to know some twists and turns. Seeing the hesitation in Chen Huai's eyes, he said: "If you are not convenient to say something, I can go to Ye Xuanfeng. The coal transportation terminal and steel logistics and processing base are integrated into a large project to develop uniformly, which is very important for the economic development of Qinghe City. I will ask his subordinates to show mercy and not dismember this project."

"In fact, Huaineng Group handed over the continuation of the coal transport terminal to a third party to take over, and they can still cooperate with each other to do a lot of work. In addition to the difficult project progress, it should not have much impact on the development of Qinghe City," said Chen Huai. "Of course, there may be some factors that I have not seen..."

Ji Chengxi shook his head and smiled, and said to Cheng Wenguang: "Uncle Cheng, some people say that Chen Huai is rude in doing things, but I think he is cunning than anyone else."

Cheng Wenguang asked with a smile: "That means, Chen Huai was not guessing wrong?"

"It's not a question of guessing right or wrong. I went back to Yanjing two days ago and just got a rumor. I planned to come here today to share with Uncle Cheng, you and Chen Huai..." Ji Chengxi said.

"What kind of rumor?" Chen Huai was naturally interested in the rumor that Ji Chengxi could find out but Cheng Wenguang didn't know.

"Yan Gang's expansion plan in Shijingshan is called Wang Yuan to reject it," said Ji Chengxi. "Of course, Wang Yuan's instructions have not yet reached the Planning Commission. Whether there will be a turning point will be possible now."

"I guess there will be no more variables," Cheng Wenguang is very familiar with Yangang's situation. Even if he cannot know Wang Yuan's instructions in advance, he can also infer that Ji Chengxi's source of information is not a problem. He said, "The environmental pressure in Yanjing is too great. Yangang's expansion plan in Shijingshan has been delayed for several years. It is time to have a conclusion. However, in this way, it is indeed necessary to increase the bargaining chips in Qinghe..."

Ji Chengxi laughed and said, "I knew Uncle Cheng would think of me."

Chen Huai could only smile bitterly and said, "If this happens, will Mei Gang really become a cocoon?"

Cheng Yi sat beside Shen Huai, pulled his sleeve, and asked in a low voice: "I can still understand what you said at the beginning; I was confused after hearing this, what puzzle are you fighting?"

Chen Huai explained to Cheng Yi: "Due to the terrain and climate, Yanjing has a small environmental capacity, coupled with the urban pie-style development, the space for heavy industry development will be smaller and smaller in the future. Yangang has formed a production capacity of 8 million tons in 991, and then due to environmental problems, the expansion plan of Shijingshan has not been approved. If the expansion plan of Yangang is completely rejected by Premier Wang Yuan, the development path left for Yangang in the future will be to find another place to build a new factory - Cheng Xi and your father are considering whether they can bring Yangang's new factory project to Qinghe..."

After hearing Chen Huai's explanation, Yu Wenli, who was standing by, suddenly realized. She saw Yang Haipeng sitting opposite him. Although Wang Weicheng was a little restrained and did not interrupt, his face was calm. He must have been able to keep up with Chen Huai and his friends' ideas, and he also felt that the talents who came out from a corner were really not to be underestimated.

After hearing Chen Huai's explanation, Cheng Yi smiled and said to him: "That's really you sold yourself, and you have to help my dad and Cheng Xi and the others count the money..."

"Isn't that?" Chen Huai spread his hands and said, "Mei Gang suffered a great loss..."

"Uncle Cheng lost his eldest daughter, how could you suffer a loss?" Ji Chengxi joked.

Cheng Yi's pink face was slightly red, and she didn't deny it; the flowers in the room were placed there, and she couldn't explain it.

"There is motivation when there is pressure," said Cheng Wenguang. "In the end, enterprises must survive by relying on competitiveness. In the future, the domestic market will accommodate seven or eight super-large steel joint enterprises, and there is no problem..."

Cheng Wenguang's job in Hebei Province, including the Ji family's push to work in Hebei Province, were all with expectations, so he hoped to use his hands to revitalize the economic development of southern Hebei Province and activate this stagnant pond.

The Ji family did not even expect Cheng Wen to directly introduce policies to the southern Jinan line in Hebei Province, which tends to build a large-scale Jinan River Port. This would make the Ji family look ugly. If they can stir up the stagnant water in southern Ji, mobilize local resources, and allow external resources to enter more actively, it will naturally be beneficial to the southern coal project from the east of Jinan coal, and it will also make the Ji family able to gather more benefits on the southern line project.

The Shimen Steel Logistics and Processing Park project will attract the attention of forces such as Luangang, Yangang and the Jinshi Group behind Shimen Steel to Shimen, and will also attract their attention to Qinghe.

Qinghe and Shimen are at the same latitude. The southern Shanxi Line, also known as the Hebei Shichi Heavy-duty Railway, is currently under construction. It is led out of the railway network in central and southern Shanxi Province, enters Hebei Province through Taihang Mountains, passes through Shimen City, and arrives at the Hebei River Port. After completion, the coal in the central and southern Shanxi will continue to pass through heavy-duty trains, go to sea from the Hebei River Port, and go to East China, South China and other regions.

Following this heavy-duty railway line that crosses the heart of Shanxi and Hebei, Meigang’s outpost for entering the North China market is Jihe Port.

If Shimen is the last position for steel giants such as Luangang and Yangang to block Meigang from entering the North China market, if it is Yangang, Luangang's actions and posture can be more active, then the blocking position should be directly built in Qinghe, so it is difficult for Meigang to make it ashore in the North China market.

If Meigang has already acquired the coal transport terminal in Jihe, and comprehensive development projects such as steel logistics and processing parks, then for Yangang, its expansion plan in Shijingshan, Yanjing, is still destined to choose another place to build a new factory. If the new factory is built directly in Jihe, it can take into account the advantages of market occupation and cost control.

Cheng Wenguang and Ji Chengxi actually wanted Chen Huai to cooperate with them to bring Yangang's new factory project to Qinghe.

Yangang had a production capacity of 8 million tons as early as September 1992. At that time, considering the environmental problems in the suburbs of Yanjing, it was planned to build new factories along the Bohai Bay area, and even acquired iron ore resources in South America as early as 1992. However, before that, Qinghe was not the first choice for Yangang to build a new factory.

Yangang's new factory project will not be less than three million tons of production capacity. If this project can be brought to Qinghe, even considering that Yangang may move out of Yanjing as a whole in the future, this project will have a great significance for Qinghe and the future development of central and southern Hebei regions.
Chapter completed!
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