Mingshui Chemical: Reshaping the industry to enhance corporate strength

——An interview with Shi Jianzhong, Chairman of Shandong Jinmei Mingshui Chemical Group Co., Ltd. “The Twelfth Five-Year Plan” is full of opportunities and challenges, such as rolling into the Yangtze River and bringing more expectation to the crowd. Recently, Shi Jianzhong, chairman of Shandong Jinmei Mingshui Chemical Group Co., Ltd., accepted an interview with reporters around the major tasks in 2011 and the implementation of the “Twelfth Five-Year Plan” by the company.

Reporter: This year marks the beginning of the company's implementation of the “Twelfth Five-Year” development plan. How do you judge the economic trends of the industry in 2011? What will be the impact on business development?

Shi Jianzhong: Recognizing the situation is a prerequisite for development. The global financial crisis has accelerated the reshuffle of the domestic nitrogen fertilizer industry. The competitive landscape we face has also undergone fundamental changes.

In the past, we faced the seller's market. The supply of products was in short supply. After the joint venture with Shanxi Coal Group, the advantages of capital and raw materials were obvious, and the market competitiveness was strong. However, many nitrogen fertilizer companies are implementing energy expansion and transformation. There is a serious overcapacity in domestic nitrogen fertilizers and methanol. The seller’s market has become a buyer’s market and the competitive environment has undergone fundamental changes. Firstly, the trend of “big eating” has become increasingly evident. Large domestic coal groups have competed to acquire nitrogen fertilizer companies, or invested directly in the construction of high-level nitrogen fertilizer production facilities near coal mines to achieve on-the-spot conversion and deep processing of coal resources; The situation of ultra-slowness has become clearer. Some new nitrogen fertilizer production plants have begun to adopt new gas-making processes and equipment, which have reduced the level of raw material consumption and the advantages of low-cost operation have begun to become prominent. Third, the phenomenon of “air squeeze coal” has begun to rise. The discovery of natural gas resources with large recoverable reserves, low exploitation and transportation costs, and low environmental pollution pressure has become the strategic direction of large-scale chemical companies.

These changes have had a profound impact on us: First, as large-scale coal companies enter the coal chemical industry, there will be a more intense market competition. Enterprises must establish themselves in the fierce market competition. Prepare adequately in advance; Second, the universal adoption of new process technologies may prompt the introduction of corresponding industry regulations and policies to improve the access threshold for nitrogen fertilizer production enterprises; thirdly, large-scale production facilities using natural gas as raw materials are put into production, making “West Feidong” "Advance" has become a trend, and how the coal chemical manufacturing companies can cope with the test of these competitions deserves our in-depth reflection and active response.

Reporter: In 2011, what kind of development ideas was formulated by the company in response to changes in the market environment?

Shi Jianzhong: Finding the right orientation is the basis for development. In the national “Twelfth Five-Year” development plan, the in-depth development of industrialization, informatization, urbanization, marketization, and internationalization has become a domestic development trend. In terms of industries, the country is accelerating the pace of reforms, constantly perfecting the socialist market economic system, constantly adjusting the structure of economic development, gradually phasing out the “three high” enterprises, striving to transform the mode of economic growth, and achieving a healthy and sustainable development of the national economy.

How to position the company's strategy is the key to speeding up the transformation of development methods and highlighting the competition among industry players. As a nitrogenous fertilizer company with a history of more than 50 years, our strategic position is to optimize fertilizers and strengthen chemical industry. Based on urea and methanol, we will continue to extend the industrial chain and realize effective resource allocation. "High-end, multi-generation, and low-pollution" requirements are laid out, and efforts are being made to create a resource-saving and environment-friendly Fuxin Coal Chemicals Group to increase its competitiveness and risk resistance. This is also the direction that the company has been working hard in recent years. After more than five years of development, we have formed a coal chemical production base with Zhangqiu as the center and Fucheng, Tengzhou, Ningyang and Wendeng as the base points. At the same time, we continue to carry out equipment transformation and technological innovation, and strengthen the three transformation measures of open source, expansion, and throttling. Open source is the use of advanced technological processes to develop effective substitutes for methanol and synthetic ammonia, striving to cultivate new economic growth points and achieve multi-product management. Capacity expansion is based on the existing scale of production of urea and methanol to achieve local transformation of products, continuously expand the industrial chain, expand internal "dilution" of low value-added products, and strive to increase the added value of products. The throttling means that through hard work, the company constantly applies new technologies, new equipment, and new processes to reduce consumption, realize cost reduction and efficiency increase, and increase product competitiveness.

Reporter: What are the company's priorities?

Shi Jianzhong: Enterprises must develop and management is the key. The development of enterprises cannot be separated from scientific and efficient management methods. In the long-term development process, the company has gradually established a flat and efficient management model, but with the development of the times, the management philosophy is constantly updated, which requires us to follow the development trend, master new management concepts, apply new management The approach is centered on corporate human resources management. It focuses on strengthening cost control. It focuses on building an efficient marketing system. It is based on corporate culture construction and uses lean management as the main line to continuously enhance the employees' awareness of risks and cost awareness. Save awareness, continuously improve the centripetal force, cohesiveness, and combat effectiveness of the employees, and comprehensively improve the overall operation level of the company.

While carrying out various basic management tasks, it is necessary to continuously strengthen the construction of marketing networks and agrochemical services. Therefore, the company will continuously and in depth promote agrochemical services, and realize local production and sales of products. With the help of local agricultural resources sales network, professional sales teams and advanced management concepts, the company will further rationalize the agricultural resources management service network and standardize the agricultural capital market. . At the same time, we will strengthen the service functions of the agrochemical center, realize direct supply of agricultural resources, reduce logistics transportation costs, and gradually establish flexible and diversified marketing models for different customer groups, product requirements, and product positioning, so that farmers can truly benefit from it and continuously improve products. Brand awareness and customer loyalty.

Accelerate the construction of a resource-saving and environment-friendly society, limit the excess capacity of methanol, encourage the development of coal-based polygeneration, develop and utilize clean energy, and promote the combination of chemical production and energy conversion to increase the comprehensive utilization efficiency of coal resources. Has become a trend. In the product development field of methanol clean fuel, the company took full advantage of its geographical location and product advantages, built a methanol methanol production line with the help of Shanxi Jiaxin Clean Fuel Company's leading technologies in methanol fuel and methanol gasoline, and actively promoted the methanol clean fuel for vehicles, further Extend the industrial chain and cultivate new economic growth points.

In short, the "12th Five-Year Plan" period is the key period for the company to take scientific development as its theme, comprehensively promote safe development, stable development, efficient development, transformation and development, leapfrog development, and accelerate the transformation of economic growth. The company will make full use of the existing geo-advantages, resource advantages, scale advantages, technological advantages, market advantages, product structure advantages, and human resources advantages, relying on the development plan of Shanxi Coal Group coal chemical industry and combining the current national industrial policy with Energy-saving, emission-reduction and recycling economy are the entry point to achieve local transformation of urea and methanol production scale, extend the industrial chain, cultivate new profit growth points, maximize profits, improve core competitiveness, and turn the company into a company Regional coal chemical industry base.



During the “12th Five-Year Plan” period, the industry reshuffle will bring about fundamental changes in the competitive landscape. Accurate positioning is the foundation for the development of enterprises, and it is also the key to accelerating the transformation of development methods and highlighting the competition in the industry.