Chinese steel company seeks new path amid challenges

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01:48

While taking the lead in the country's reform and opening up, China’s state-owned companies are facing competitive challenges at home and abroad.

Let's take a look at HBIS Group, whose most advanced production line is highly automated, with only a few people watching over it. Built in 2015, it makes steel for automobiles.

"Apart from improving the quality of our products," said Wang Yunge, deputy director of the Technical Center in HBIS Group's TangSteel, “we are also participating in the design process of auto manufacturing. It helps us win more high-end customers."

The shift is winning the company of more global leading manufacturers, including some new energy automakers.

Competition in the iron and steel industry is fierce. That is pushing the company to become more sensitive to the market, including raising their proportion of high value-added products.

So far, 70 percent of HBIS's products are high value-added ones such as steel for cars and home appliances.

Li Yiren, strategic director and president of the Strategy Institute of the HBIS Group /Photo by CGTN's Cai Jingxuan

"In the past 10 years, we've focused on high-end customers and have been upgrading our products and services. This is also an adjustment to meeting the requirements for iron and steel materials given the industrialization in China," said Li Yiren, strategic director and president of the Strategy Institute of the HBIS Group.

The HBIS is also developing its global presence. In 2015, it invested in Duferco International Trading Holding, a leading international trading platform of steel products.

HBIS Tangsteel is one of the largest steel enterprises in China. /Photo by CGTN's Cai Jingxuan

"Our overseas strategy is to focus on localization," Li stressed, "with minimum interference of the management of overseas companies. And most of the employees also are local."

The HBIS holds over 70 overseas companies. It Meanwhile, the company is trying to build an open and inclusive culture.