OREANDA-NEWS. July 23, 2014. The production and operation analysis meeting of TISCO for the first half of 2014 was held. The company leaders, Li Xiaobo, Gao Xiangming, Hou Jinping, Zhou Yizhou, Zhang Zhifang, Wang Xinping, Han Ruiping, Wang Jiguang, Chai Zhiyong, Han Zhentang, Peng Cungen, Gao Jianbing, Xie Li, Wang Baidong, and other company leaders, directors of secondary units of TISCO, Chief Accountant and Director of Finance and Accounting Department of TISCO Linfen Iron and Steel Co. Ltd, directors of the departments of the TISCO headquarters, took part in the meeting.
 
The meeting was chaired by Chairman of TISCO, Li Xiaobo.
 
The meeting reported the first half of 2014 budgetary performance and the assessment and evaluation of TISCO and Shanxi Taigang Stainless Steel Co. Ltd.(STSS) , analyzed the existing problems and planned the key work in the next half year. Stainless Steel Hot Rolling Mill, Precision Strip Company and TISCO Engineering and Technology Co. Ltd. reported their budgetary performance and measures taken in the first half of 2014 and their work targets and plan in the next half year.
 
Chairman of TISCO, Li Xiaobo, made an important speech at the meeting. He pointed out that we should adjust to the new normal for China economy under the circumstances that the iron and steel industry was faced with the ongoing and intense competition and the ongoing difficulties in their business operation; after a period of the survival of the fittest the competitive enterprises would develop and grow and the inferior enterprises would exit the market, the iron and steel industry would return to the reasonable competition conditions. There was no declining industry and there was only declining enterprise. The difficulty itself was a motivator, if you were afraid of difficulties, the difficulties were difficult. If you were not afraid of difficulties, the difficulties were not difficult. The competitive enterprises should take advantage of reversed transmission of pressure for easing monetary condition to tackle difficulties head on in the face of adversity, base on endogenous impetus, give full play to their advantages, foster strategic products, have their own core technology and intellectual property rights and become the winner in market competition.

This is the only way for the iron and steel industry to get out of the difficulties. Li Xiaobo pointed out that reform was the fundamental driver of the development. In the first half of this year TISCO focused on the transmission of the market pressure, strengthening the motives of the carders, stimulating the vitality of the employees and deepening the reforms in an all-round way. On the one hand, we promoted the market-oriented reforms inside our company, completely changed our business accounting system to link the remuneration of each department closely with the market value it made, and made all the employees feel the market pressure; on the other hand, we strongly advanced the “double managers” system to make full use of the marketing advantages of the subsidiaries, developed the new market, competed for new customers and created high-end demand by both the professional marketing and the technological marketing. In the practice of deepening the reform, a number of advanced models was emerged in TISCO and created some good experience and practices, which gave us some deep enlightenment and strengthened our confidence to make continual progress and continuously create competitive advantages.
     
Li Xiaobo pointed out that when facing the new normal for the competition in the iron and steel industry, we should dialectically examine our advantages and disadvantages, strengthen our senses of crisis, responsibility and urgency, vigorously advocate performance culture, keep a close watch on the problems and gaps in our work, make benchmarking according to higher standards and spare no effort to catch up with and surpass the advanced world levels. In the next half of 2014, we should devote our efforts to optimize our product structure, strengthen the construction of the SBU (strategic business unit) and LHY team, intensify the development and production of the strategic products, concentrate our efforts on fostering our unique and advanced products  to take the leading position in the market competition and continuously improve our competitiveness.

We should take the quality as our lifeblood, strengthen the concept that the product quality came from the production, further elaborate, narrow and solidify our quality procedures, do everything to meet the customer's individualized requirements, use customer satisfaction as our quality standard, deal with the quality problems with zero-tolerance attitude, create our brand with quality and bring about an upswing in product quality. We should further change our concepts, vigorously promote the optimization of the personnel and organization structure, speed up the reduction of the outsourced businesses, improve the productivity, advance the multi-skilled personnel practice. We should strengthen the process benchmarking, actively to find out where we have lagged behind, improve the science of the benchmarking, all units inside TISCO should be open and learn each other, and make progress together. We should vigorously practice the performance culture, timely and scientifically improve the performance appraisal and combine them with the cadre evaluation and appointment to promote the rapid growth of the performance.
 
Li Xiaobo pointed out emphatically that ability came from the pressure of the market. We should upgrade quickly our competitiveness in the difficult times. Business is war without bullets, we must fight for survival, development and ideals, we should further enhance our confidence and press forward in the hard times and strive to complete our annual budgetary target.
 
After commenting on the operating performance of the controlled companies in the first half year, Gao Xiangming, President of TISCO, pointed out that the good performance of the controlled companies in the first half year were hard won under the tough market environments. We should continue to implement the spirit of the speech that made by Chairman of TISCO, Li Xiaobo, on the symposium of studying and implementing the spirit of CCP's Third Plenary Session of 18th Party Central Committee, continue to firmly understand, practice and implement the company’s guidelines for all the work, strengthen our confidence in completion of the annual budget target. In order to fulfill our established target, all carders at different levels should face directly the existing problems and acknowledge the existing gaps, strengthen the inspection and guidance on the work according to the division of responsibility, help and urge the controlled companies to implement the measures as soon as possible, and fully tap our potentials.
 
Gao Xiangming put forward specific requirements on the deepening reform: we should further strengthen our consciousness for the deepening reform, speed up the transformation from the enterprises basically concerned with production to the value based management enterprise, continue to improve our market competitiveness and profitability, pinpoint the weak links in our production and operation, organize teams to solve the problems and put an end to the adverse impact on the production and operation. We should strengthen the investigation and research, subdivide the business accounting units and further clarify the responsibility. All the functional departments should bravely take their responsibilities, strengthen the cooperation, further improve professional management and raise the standard of the service. We should further deepen the reform of the three systems of labor, personnel and distribution, speed up the establishment of the mechanism that the employees can be employed and dismissed, the carders can be promoted and demoted and the incomes can be increased and decreased in order to realize the survival of the fittest. We should speed up to work out and perfect the performance evaluation system for the leading group and the leading carders, further strengthen the construction of the leading group, promote the leaders to improve their leading and working methods. We should break away from the traditional thinking habits, innovate the business model, speed up the improvement of the purchasing management level of the related business departments. We must, according to the requirements of the “0123” safety control mode and “five phases”, strengthen the production safety management to realize the balanced upgrade for each phases, reinforce the safety management teams at the basic units to lay a solid safety foundation. We should strictly manage the outsourcing project and resolutely put an end to the illegally sub-contracting and contract-transferring phenomenon. We should enhance risk awareness, strengthen the risk management. We should do well in the second round of employee engagement evaluation, the vocational skill assessment and the selection of the second batch of chief engineers, designers etc. Gao Xiangming also put forward requirements for the reform of the health care and real estate.    
 
Director of TISCO and President of STSS, Zhang Zhifang, pointed out that, generally speaking, the annual budget of STSS embodied the scientific nature. In the first half year, we enhanced our motivation and energy, and formed the vivid situation of working in unity, accountability, clear division of the responsibility and strict assessment by the market-oriented reform of the economic responsibility system and the reversed transmission of pressure. We practically strengthened the system construction of the SBU and LHY teams, strived to produce the world-class products, build a first rate talent team and work regulations, and make new breakthrough in the product quality. When we made the marketing and purchasing, we kept a close watch on the market variations, quickly reacted to the market situation and made remarkable results in market development and reducing costs and increasing efficiency. In the next half year, we should keep working hard to complete the budget target. The subsidiaries that have successfully completed the budget target in the first half year should continue to maintain their good momentum, the subsidiaries that have not completed the first half year budget target should catch up. All units should face up to the existing outstanding problems, especially, concentrate the efforts to market development, optimization of the product structure, improvement of the product quality, reduction of the cost and improvement of efficiency, and increase the product yield and unswervingly complete the annual budget target.
 
The relevant leaders of TISCO put forward their suggestions and opinions for the measures to complete the budget target.