The Development Strategies Of Tangshan Iron And Steel Industry

Iron and steel industry has been the most important industry of Tangshan City. The rise or decline of this industry has a direct influence upon the process of building a well-off society in Tangshan. The rapid economic growth in Tangshan during the recent years directly benefits from the unprecedented development of its iron and steel industry. By the end of 2003, the output value of iron and steel of Tangshan has covered 70% of the total industrial output value, while the tax turned in has covered one third of the total financial revenue of the city and become an important source of budgetary income of most of its counties (cities) and districts. In the meantime, the iron and steel industry has built an important channel for introducing voluntary capital and developing nongovernmental economy, and it has paved a broad road for the migration of surplus rural labor force to urban areas.At the middle stage of industrialization, the economic structure of our country is moving towards heavy chemical industry, and Tangshan City will play a key role as the heavy chemical base in the around-Bohai Economic Circle. According to the development strategy of moving the allocation of productive force towards coastal areas, merging into the Big Triangle of Beijing, Tianjin and Tangshan, differentiating functions from Beijing and Tianjin, the iron and steel industry will contribute more and play an direct leading role to the economic and social development of Tangshan and further areas around it, and the industry still has great potential for development.By analyzing the iron and steel industry of China and the world, the value chain of production process of iron and steel, as well as the current situations of external environment and resource capacity Tangshan faces, on the basis of SWOT analysis, the opportunities, threats, advantages and disadvantages for the development of Tangshan's iron and steel industry are evaluated; by using the theory and methods of strategic management, by procedures including strategic analysis, selection and evaluation, active development strategy for Tangshan's iron and steel industry is addressed. Strategies include those of stable increment, mass development, moving of productivity force allocation to coastal areas, solid orientation of species and quality, multi-polar investment, circular economy. It is hoped that these strategies will supply certain references to the middle and long-term development of the iron and steel industry of Tangshan City.