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Chapter 362 Duan Hongxuan discusses the future development of Zha Steel Plant

 Director Yang was enthused by the solar cooker that Duan Hongxuan built, and wanted to take it to the steel rolling factory for production, but Duan Hongxuan did not agree with it, and explained the reason for his disapproval.

Factory Director Yang was stunned by Duan Hongxuan's words, and then calmed down and started thinking seriously. Director Lin stopped yelling about the solar cooker and lowered his head in deep thought.

Xiao Du next to him looked at Duan Hongxuan with admiration and did not dare to interrupt.

Not to mention Li Xianghong, she could only listen, but she still understood to some extent. Duan Hongxuan came up with another amazing product, and even helped the steel rolling mill to use this product in exchange for a license to produce machine tools!

Li Xianghong looked at the calm and confident Duan Hongxuan with nothing but admiration in her eyes!

After taking a sip of tea and looking at Director Yang who was still thinking deeply, Duan Hongxuan shook his head secretly: "Uncle Yang, do you have any clear ideas about the future development of the steel rolling mill? Or should you say that the future of the steel rolling mill in your imagination should be

What does it look like? In which direction should it develop?"

Factory Director Yang looked up at Duan Hongxuan: "Of course the bigger the development, the better!"

Duan Hongxuan was speechless, "Uncle Yang, of course it's good, no problem, but what do you think the main business of the steel rolling mill should be in the future?"

"The main business? Of course it is the current steel rolling and the machine tool production that is about to start!"

"Uncle Yang, of course there is no problem with machine tool production, but do you plan to keep rolling steel like this step by step? Don't you want to improve on steel rolling?"

"How to improve? Expand the production scale of steel rolling?" Director Yang asked a little strangely.

Duan Hongxuan shook his head, but he could understand.

Nowadays, domestic production departments carry out production under the arrangement of superiors. The production departments follow the instructions of superiors to produce whatever products or how much to produce. Even if the production capacity, technology, and quality lag behind, the production departments rarely think about it themselves.

How to improve.

Because all the products produced are purchased and sold by the superior department, the manufacturer does not have to worry about sales at all!

Therefore, leaders of the production department who think like Director Yang are a common phenomenon in this era!

Duan Hongxuan feels that Factory Director Yang is a pretty good leader. If he can change his ideas a little bit and become more pioneering, he might still be able to accomplish a lot after the opening up in the future.

So Duan Hongxuan began to "brainwash" Factory Director Yang, "Uncle Yang, do you know what product added value is?"

"Product added value?" This term is still relatively unfamiliar to Director Yang, who shook his head in confusion.

"Let me give you an example! Uncle Yang, do you know the cutting tools used on many machine tools in your steel rolling mill?"

Director Yang nodded: "I know this!"

"Okay, I'll use this to explain!

Knives of the same specifications are both domestically produced and imported! The price of imported knives is many times that of domestically produced knives. Isn’t this true?"

Director Yang continued to nod: "Yes, imported knives are indeed expensive, but they are durable! Many times, some products must be processed with imported knives, and domestic ones are not durable at all!"

"I know this, Uncle Yang!

Let’s think about it carefully: knives of the same specifications, whether imported or domestic, are actually processed into knives from a piece of steel. Isn’t this correct?”

"That's right!"

"That is to say, regardless of the quality of the steel, the process of processing steel into knives, whether it is domestic or imported, the processing steps and the man-hours required should not be much different! Isn't this correct?"
"That's right!" Director Yang already had some vague ideas at this time!

"If steel materials of the same size are processed using the same process and working hours to produce knives of the same specifications, the imported price is several times that of domestic production! In other words, the steel materials used abroad are processed into knives, and he is very careful about the processing of the products.

The value given by Chinese brands is much higher than that of domestic products!

Speaking of steel, the steel produced by your rolling mill can be sold for 1,000 yuan per ton, but the steel produced by some foreign steel mills is also steel-making, and the processes are similar, but it can be produced by others.

Some of the special steel can be sold for tens of thousands or even tens or hundreds of thousands per ton!

This is when people use the same iron ore in the production process and give great value to the product due to technical reasons. This is the added value of the product!"

When Director Yang and Director Lin heard this, they suddenly realized!

Just listen to Duan Hongxuan continue to say: "Uncle Yang, to be honest, in fact, your steel rolling mill not only has low production efficiency, but also produces some low value-added products. It has no ability to produce high value-added products!

The reason why products with low added value are often low value-added is ultimately because the technical content of the product is not high, which means that the threshold for entry is very low. It is easy for other manufacturers to produce the same products as yours.

Even if someone uses a little bit of innovation and adds a little bit of technology, the quality of the products they produce may be better than yours, or the cost may be lower than yours. Then your products will no longer be competitive and will be easily eliminated by the market.

!

If a factory really wants to develop well, it must produce high value-added products. High value-added products are difficult for others to imitate due to the technical threshold!

Similarly, high value-added products do not even need to be large in scale, but the output value of one factory is often as high as the output value of several large factories!

Just like growing watermelons, it also takes three or four months. The watermelons you grow can be sold for 50 cents each.

And because I have prepared a special nutrient solution for watermelons, my watermelons are much higher than yours in terms of taste and nutritional value. My watermelons can be sold for five yuan each, and others still sell them.

Come and buy it quickly!

And the kind of watermelon you grow can be grown by anyone who is willing to grow crops.

As for my kind of watermelon, without the nutrient solution prepared by me, others would not be able to grow my kind of watermelon at all. Even if others want to seize my market, they will be unable to do so. This is the high added value I give to my watermelon through technology, and

You can also monopolize the market!

This chapter is not over yet, please click on the next page to continue reading!

Therefore, technology is the basis for products to have high added value, and it is also the basis for the survival, development and growth of an enterprise!

Uncle Yang, think about it, if your steel rolling mill can produce some kind of special steel, then it is very likely that your annual output will only be half or even less than what you are now, but the output value may be several times higher than what you are now!

This makes money and workers don’t have to work so hard!

Therefore, in my idea, the steel rolling mill should focus on two businesses. One is machine tools. This goes without saying, because machine tools are not only urgently needed in our country's current industrial, agricultural and military production, but even if we can continue to

Investing in technical research in machine tool production can produce more advanced machine tools, and steel rolling mills may use machine tools to export to earn foreign exchange!

In this way, at least our country no longer has to look at the West when it comes to machine tools!

Another piece of business should gradually phase out the current steel rolling business with low production capacity and low added value, and turn to the production of special steel products with efficient production capacity and high added value, which can even produce steel products with better quality than those abroad. Then, conversely,

We can also use this high value-added steel to export and earn foreign exchange!

For example, if the steel rolling mill can produce the kind of special steel used in foreign knives, and the quality is even better than theirs, then we can produce the kind of knives that are not inferior to imported ones domestically, and then our country will no longer have to do this.

I spent foreign exchange on imported knives.

And because our labor costs are much lower than abroad, the cost of producing the same quality knives is even lower than abroad. In turn, we can export the knives, seize their market, and earn foreign exchange for the country!

Even special steel materials such as firearms, tanks, ships, warships, etc. can be researched and produced in steel rolling mills!

This is the main direction of the future development of the steel rolling mill that I envision!"

After hearing this, Director Yang stood up in excitement and looked at Duan Hongxuan, his face flushed. He walked back and forth for a long time, and then he said excitedly: "Hongxuan, you are really amazing!

You really taught me, Uncle Yang, a good lesson today!

In terms of the general direction of the development of the steel rolling mill, Uncle Yang is not as good as you! You are more suitable to be the director of the steel rolling mill than Uncle Yang, the director!

Uncle Yang now wants you to be the director of the factory!

You said it so well, Uncle Yang has learned a lesson!

Your development plan for the steel rolling mill is so right! You are so far-sighted and so far-sighted! This is a wake-up call and a sudden revelation, I...!"

Director Yang was so excited that he was a little incoherent!

Director Yang's words shocked Director Lin and others next to him, but what Duan Hongxuan said just now was so straightforward that they understood it. They suddenly felt as if the fog in front of their eyes had been broken. They really felt that what Duan Hongxuan said

This should be the future development direction of the steelmaking plant.

It turns out that Duan Hongxuan not only understands technology, he is also more far-sighted than others in the future development of the factory!


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