Forging Success: Hesteel Group seeks new path

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02:09

China's state owned companies have been leading the efforts to reform and open up. They are also facing tough competitive challenges domestically and internationally. Our reporter Ning Hong visited the Hesteel Group Company, or HBIS, which is forging its own path.

This is HBIS Group's most advanced production line. Built in 2015, it makes steel for automobiles. This production line is highly automated, with only a few people watching over the process.

WANG YUNGE, DEPUTY DIRECTOR TECHNICAL CENTER, HBIS GROUP TANGSTEEL CO. "Apart from raising the quality of our products, we are also participating in the design process of auto manufacturing. It helps us to win more high-end customers."

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

NING HONG HEBEI PROVINCE "The competition in the Iron and Steel industry is fierce, this is pushing the company to become more sensitive to the market, including raising their proportion of high value-added products."

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

LI YIREN, STRATEGIC DIRECTOR PRESIDENT OF STRATEGY INSTITUTE, HBIS GROUP CO., LTD. "In the past ten years, we've focused on high-end customers and have been upgrading our products and services. This is also an adjustment to meet the requirements for iron and steel materials as the industrialization develops in China."

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

LI YIREN, STRATEGIC DIRECTOR PRESIDENT OF STRATEGY INSTITUTE, HBIS GROUP CO., LTD. "Our overseas strategy is to focus on localization, with minimum interference of the management of overseas companies. And most of the employees also are local."

The company is striving to build an open and inclusive culture. So far HBIS holds over 70 overseas companies. Ning Hong, CGTN, Hebei Province.