**Abstract**
Jingtang Company's production can be described as poorly timed. "When it was put into operation, it just coincided with the oversupply of steel plates, and prices have always been volatile." As the flagship project of Caofeidian, Shougang Group's 10-million-ton steel project was introduced first and attracted significant attention. This project is a joint venture between Shougang and Tangshan Iron and Steel Co., Ltd. (Tangshan Steel has since completely withdrawn its shares).
As the leading project in Caofeidian, the Shougang Group’s 10-million-ton steel project became the focus of public interest. It was implemented by Shougang Jingtang Iron and Steel Co., Ltd., a joint venture between Shougang and Tangshan Iron and Steel. On May 27, an official from Shougang Jingtang stated that this project is the core of Caofeidian’s development, accounting for a quarter of the total investment. “We really hope the situation will improve. Making five to six billion yuan in profit per year should not be a problem,†he said.
However, despite being operational for three years, the project has suffered consecutive losses, with high debt levels affecting future growth. According to industry sources, the company lost over 10 billion yuan during the period from 2009 to 2012. Despite reaching its design capacity, the company still faces poor profitability.
The National Development and Reform Commission approved Shougang’s relocation plan in February 2005, aiming to build an advanced steel enterprise in Caofeidian. Shougang Jingtang was completed and officially launched on June 26, 2010, after more than five years of construction. The initial phase was designed to produce 9.89 million tons of iron, 9.00 million tons of steel, and 9.05 million tons of steel annually. The static investment reached 66.806 billion yuan, with projected annual sales revenue of 44.33 billion yuan and post-tax profit of 8.079 billion yuan.
Local officials believed that Shougang’s move to Caofeidian marked a new stage in large-scale development, positioning the area as a driver for economic growth in Hebei and Tangshan. However, the project did not meet expectations. An official admitted that while the company did not lose money in March 2023, it had experienced continuous losses over the years. Industry insiders noted that the company faced significant challenges, including limited market demand for its high-end products and difficulties in selling them at competitive prices.
Despite its advanced technology and equipment, Jingtang struggled to achieve the expected market recognition. Analysts pointed out that although the company used high-grade imported iron ore, its product range lacked distinctiveness, and sales channels were limited. As a result, losses continued to grow.
Currently, Jingtang operates mainly based on customer orders, rather than full-scale production. While it has taken over and even exceeded the capacity of Shougang’s Beijing operations, market conditions remain sluggish, preventing the company from reaching its full potential.
High debt remains a major challenge for Chinese steel companies. Jingtang, in particular, faces heavy repayment pressure due to its large investment. Although the company claims to have strictly followed the state-approved budget, the interest costs associated with its loans are substantial. Employees’ salaries also add to the financial burden.
In summary, Jingtang’s story reflects both ambition and struggle. While it represents a leap forward in steel production, it also highlights the risks of timing, market volatility, and financial pressures in the industry.
Polishing Solid Compound,Aluminum Polishing Compound,Metal Polishing Compound,Stainless Steel Polishing Compound
Jiangmen Gude Polishing Equipment Co., Ltd , https://www.kokipolishing.com