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The New Giant of Stainless Steel – Tsingshan Group

New Giant of Stainless Steel - Tsingshan Holding Group

Even if Tsingshan Stainless Steel was mentioned 10 years ago, many people may not know who they are, even if they are in the stainless steel industry. Tsingshan Holdings Group, a steel giant born in the mecca of private enterprise in China, has been among the Fortune 500 in just 20 years. For a traditional industry, this is undoubtedly a legend.

As I remember in 2007, I was working in a stainless steel pipe fittings manufacturer as a salesman, involved in receiving the factory audit of Netherland Van Leeuwen Group. We knew that Van Leeuwen is a comprehensive multinational company in the production and sale of steel pipes, with branches and offices in Europe and around the world. The auditor from Van Leeuwen who asked me at that time what did I think about Tsingshan stainless steel pipe and how it felt to me. Because we makes stainless steel butt-weld fittings, the raw materials we use are large and small stainless steel seamless pipe and welded pipes, and Tsingshan Steel Pipe – which belongs to the Tsingshan Group, is one of our suppliers.

Unfortunately, Tsingshan Steel was not a qualified stainless steel tube supplier to Van Leeuwen. I remember when Van Leeuwen’s qualified suppliers included Changshu walsin, Huzhou JiuLi, Jiaxing Jiashang, Zhejiang Huadi Steel and others. It seems unimaginable now, but at that time it was a normal thing. After all, Tsingshan Group was not yet that famous, and Tsingshan steel pipes were perhaps just synonymous with cost effectiveness, as they’re probably the lowest priced of these companies and did not have a good reputation among his peers.

Tsingshan stainless steel headquarter

When Zhang Jimin and Xiang Guangda founded Zhejiang Tsingshan Special Steel Co., Ltd. in 1998, they probably didn’t think they could make such a big business. So, how did Tsingshan Group grow up? Let’s briefly introduce it.

“In 1986, Zhang Jimin and five relatives in partnership, founded the Ouhai joint experimental factory in Yongxing Wenzhou, the product is doors and windows. They got a big development and fast growth in business. In 1988, they set up Zhejiang ouhai automobile doors and windows manufacturing company, is also this year, Xiang Guangda gave up his job of machine repair workshop director in the stated-owned company of Wenzhou marine fishing company – the iron rice bowl, to go with Zhang Jimin business, they found the business opportunities of automobile doors and windows, from Production of ordinary doors and windows to automotive doors and windows.

In 1989, Zhang Jimin, whose “ambition” had further expanded, officially entered the steel industry. Then Zhejiang Fengye Group was founded in six years later in cooperation with shareholders, and China’s first private steel enterprise was officially born in Wenzhou Zhejiang.

In June 1998, Zhang Jimin and others founded Zhejiang Tsingshan Special Steel Co. Tsingshan in Yongzhong Tsingshan Village, Longwan District, Wenzhou City.

At the beginning of the plant, there were many problems. The first was the lack of technology, and the second was the lack of talents. In the background at that time, many excellent talents were not willing to come to private enterprises. In desperation, Zhang Jimin went north to Taiyuan, found the then steel giant – Taiyuan Iron and Steel Group, spent a long time, with a sincere attitude and superior treatment, and finally convinced a group of experts to join the camp.

Tsingshan Steel has been given a new lease of life by the addition of experts. In 2003, Tsingshan Holding Group was established and branches were opened in various places. in June 2005, Tsingshan made a technical transformation of Henan Jinhui Special Steel Co. , built a stainless steel plate steelmaking base with an annual capacity of 400,000 tons.

Tsingshan’s Dingxin Industry is the first company to adopt the RKEF process in China, and is the first manufacturer in the international arena to combine the production of stainless steel (AOD) with the RKEF production process to produce stainless steel directly.

This is an innovation in the world of stainless steel production, which can save more than 20% steelmaking costs and more than 50% energy consumption per ton of steel. This new production process has enabled Tsingshan Steel to continue its success and development in the stainless steel industry. “

Tsingshan stainless steel yard

This is a quote from an article that roughly describes the history of Tsingshan Holding Group. The hardships and challenges involved are probably known only to those involved.

By 2019, Tsingshan Group was listed on the Fortune 500 for the first time, ranking as high as 361st, becoming the first Fortune 500 company in Wenzhou. Today, Tsingshan Group of Companies has more than 10 direct enterprises under its jurisdiction, including Zhejiang Tsingshan Iron & Steel Co. The production bases span Zhejiang, Shanghai, Guangdong, Henan, etc.; and there are a number of joint ventures or cooperation with stainless steel production in Guangxi, Fujian, Jiangsu and other places. And in Indonesia, India, Zimbabwe, the United States and other places have or under construction nickel and stainless steel production bases.

In 2020, China’s stainless steel crude steel output was 30.139 million tons, while the stainless steel crude steel output of Tsingshan Group was 10.8 million tons, standing for more than 1/3 of the total national production.

Today, Tsingshan Group is the world’s largest owner of nickel resources. As the “power” of new energy vehicles, not only in the field of stainless steel, the future of new energy will also have a place for Tsingshan.