Managers at all levels should enhance their ideological awareness, competitive awareness, and cost awareness, adhere to the principle of 'all processes, all systems, all elements, and all employees participating in cost reduction', act in a unified manner, listen to commands, demonstrate and lead by example, pay attention to technological indicators progress, procurement system cost reduction, structural adjustment and efficiency increase, change work style, and improve management efficiency. With resolute and effective measures, confidence and determination to win, we will promote the sustained and stable development of the company

This is the mobilization speech given by An Bo, General Manager of Hebei Rongxin Steel Co., Ltd., at the conference to reduce costs and increase efficiency.

On the afternoon of November 18, 2023, Hebei Rongxin Iron and Steel Co., Ltd. organized a kickoff meeting for cost reduction. Leaders such as General Manager An Bo, Deputy General Manager of Equipment Yuan Xuejun, and first level supervisors of various production plants and professional departments attended the meeting.

Dong Chenglou, Minister of Human Resources and Planning, announced the structure and responsibilities of the Hebei Rongxin Steel Cost Reduction Research Group.

Pei Wenxiao, Vice Minister of the Human Resources and Planning Department, announced the incentive and reward plan for cost reduction and supporting weekly indicators.

During his statement, the director of the ironmaking plant, Ji Guangli, stated that ironmaking accounts for over 70% of the company's costs, and cost control is particularly important. The ironmaking plant will actively benchmark exemplary organization, introduce good experience and practices in structural cost reduction, reduce fuel costs, refine operations, and ensure stable and smooth furnace conditions.

Han Xiaoming, Vice Minister of the Material Business Department of the Group Supply Company, stated in his statement that he will continue to track market supply and demand dynamics, grasp price fluctuations, and implement dynamic management of settlement prices. Actively introduce and develop new customers, reserve suppliers, reduce procurement costs through market-oriented bidding activities, and achieve maximum project benefits.

At the meeting, General Manager An Bo of the company analyzed the current situation faced by both internal and external enterprises, and pointed out that the weak demand for steel continues, and the overall situation of the steel industry is not optimistic. Each unit should strengthen the awareness of cost control throughout the entire process, and control it through budgeting, planning, implementation, control, accounting, analysis, assessment, efficiency improvement, solidification, etc., to explore the potential for cost reduction and strive to reduce the costs of molten iron and steel billets, Establish a cost control responsibility system that is "horizontal to the edge, vertical to the bottom, and responsibility to individuals" based on actual production, continuously optimize various technical and economic indicators, and develop cost reduction measures and implementation plans for supporting processes.

Based on the current situation, Anbo proposes 14 key measures to further reduce costs and increase efficiency.

One is to enhance the awareness of reducing costs and increasing efficiency among all employees. Leaders and cadres at all levels should have the courage to take on responsibilities and take action, deeply mobilize all employees to participate in normalized cost reduction and efficiency improvement work, and form a good atmosphere of "everyone cares about costs, everyone controls costs, and everyone benefits from costs" throughout the company.

The second is to do a good job in budget preparation and scheme design. Cost is planned, designed, implemented, and optimized. It is necessary to identify the subjective and objective reasons for the difference between the target cost and the actual cost based on the ore blending plan, furnace material structure, scrap steel structure, product quality standards, and process path, and develop supporting plans to maximize the potential for cost reduction.

The third is to strengthen market analysis and judgment. Pay attention to the market, analyze the market, seize the market, select suitable suppliers, and pursue product cost-effectiveness.

The fourth is to strengthen the management of raw material and fuel procurement. Adhere to the "refined material policy", closely monitor the market prices of raw materials, continue to explore procurement channels and resources, and achieve quality and quantity assurance while reducing procurement costs.

Fifth, strengthen production organization. Adhere to the model of "focusing on blast furnaces and organizing production in a balanced manner", promote efficient operations, reduce unnecessary reshipment, and reduce production costs.

Sixth, strengthen the quality control of process technology. Improve the entire process quality control system, produce "high-quality" products at a "low cost", and help the company achieve maximum product efficiency and enhance competitiveness.

The seventh is to optimize the structure of raw materials and fuels. On the premise of ensuring stable and smooth production, clarify the ideas of coal blending, coke blending, and ore blending, fully select the coke, coal powder, and furnace ore structure that are suitable for pre iron production and have the lowest iron cost, and play a good role in ore blending and cost reduction.

Eight is to strengthen basic management. Improve the supervision and monitoring of water content, particle size, storage and entry, and achieve standardized processes and clear responsibilities.

Nine is to increase efforts in innovation and tackling key problems. Comprehensively promote scientific and technological innovation and transform market pressure into a strong driving force to supplement weaknesses, overcome bottlenecks, improve indicators, and create benefits.

Ten is to strengthen benchmarking learning and communication. Keep your eyes open, "go out" to strengthen benchmarking and identify differences, establish a strong sense of urgency and crisis, carefully sort out problems, analyze the reasons in depth, and achieve targeted treatment.

Eleven is to strengthen accident management. Strictly control the occurrence of various safety and environmental accidents, and accidents are the biggest cost. While reducing costs, each unit should anticipate risks and hidden dangers and strictly prohibit accidents.

The twelfth is to improve the system and mechanism for reducing costs and increasing efficiency. Each professional group and process scientifically sets a goal responsibility system based on the actual situation, decomposes indicators layer by layer, and conducts pressure level by level. Promote the institutionalization of cost reduction and efficiency increase through a positive incentive oriented approach with indicators for everyone.

Thirteen is to enhance departmental service collaboration capabilities. Deeply tap into the potential of cross departmental collaboration in cost reduction and efficiency improvement, shift from "sweeping the snow before each door" to "individual obedience to the organization" and "local obedience to the overall situation", and work together to achieve the company's cost reduction goal.

The 14th is to strengthen the construction of work style and enhance capabilities. Cadres at all levels should play a leading role, take a practical and long-term perspective, solve problems in changing their concepts, and ensure that the direction of reducing costs is clearer, the path is more accurate, the intensity is greater, and the effect is better.

Anbo emphasized that reducing costs and increasing efficiency is a long-term task that needs to be implemented. All units should focus on key points, difficulties, and bottlenecks, unite as one, overcome difficulties, and go all out to promote the production and operation of Rongxin Steel to a new level.

▲ Attending leaders sign and swear on banners

The kickoff meeting for reducing costs is a mobilization meeting that rings the alarm and gathers consensus, and also a vow meeting that inspires morale and clarifies direction. Hebei Rongxin Iron and Steel Co., Ltd. will implement the overall deployment of the group's cost reduction, adhere to full system analysis and process sorting, explore potential from both sides, and implement closed-loop control to ensure that potential should be fully explored, costs should be reduced, and benefits should be increased. Leaders and cadres at all levels will take the lead in shouldering indicators, responsibilities, and tasks, devising extraordinary strategies, exerting extraordinary efforts, and using extraordinary tactics to promote comprehensive cost reduction and efficiency increase in enterprises. All cadres and employees will firmly establish a sense of a community with a shared future, work with one heart, goals in the same direction, actions in the same direction, and measures in the same direction