> Metallurgical Industry

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With a development history of 100 years, metallurgical industry in Chongqing comprises two categories: steel and nonferrous metal. Moreover, Chongqing has become the biggest aluminum processing base in China . Gross industrial output value of Chongqing metallurgical industry achieved 8.961 billion yuan and sales income realized 8.029 billion yuan in 2000. There are 137 state-owned and non-state-owned metallurgical enterprises (with annual sales income of over 5 million yuan) in Chongqing . Among them, there are 2 extra large enterprises namely Chongqing Steel (Group) Co., Ltd. and Southwest Aluminum (Group) Co., Ltd. and 1 large enterprise; and the others are SMEs. All together there is a working staff of 86,000.

Chongqing has an annual capacity of over 2,000 varieties in metallurgical industry. The annual capacity of the 10 kinds of nonferrous metal reaches 75,500 tons, among which, there are 100 kinds of core products and nearly 2,000 varieties and specifications in steel industry. The main products include pressure vessel plates, armor plates for shipbuilding, structural alloy steel, shift tool steel, alloy spring steel and steel wire, etc.

Chongqing Steel (Group) Co., Ltd. is the locomotive enterprise in Chongqing steel industry. Total assets of Chongqing steel industry were 11.977 billion yuan and gross liabilities were 6.956 billion yuan at the end of 2000. Thereinto, the total assets and total liabilities of Chongqing Steel (Group) Co., Ltd. reached 11.867 billion yuan and 6.158 billion yuan respectively. Moreover, the company achieved a gross industrial output value (in constant price) of 3.595 billion yuan, sales income of 5.154 billion yuan, export delivery value of 369.61 million yuan and profits of 14.997 million yuan that year. Other leading enterprises in Chongqing steel industry are Chongqing Steel Wire Works and Chongqing WuJiang SanJiaotan Manganese Co., Ltd. The electrolytic manganese produced by the latter has a purity of 99.94%. Thanks to its high quality and low price, this product falls short of demand in international markets.

The leading enterprises of Chongqing nonferrous metal industry are Southwest Aluminum (Group) Co., Ltd, Chongqing Smelter (Group) Corp., Ltd. and Chongqing Fuling Dongsheng Aluminum Co., Ltd. All together, there are 14 SMEs, in which, there are 8 processing enterprises and 6 smelter enterprises. The total assets of Chongqing nonferrous metal industry are 6.954 billion yuan, among which, total assets of Southwest Aluminum (Group) Co., Ltd is 5.816 billion yuan. The main products in Chongqing nonferrous metal industry are as follows: electrolytic copper, electrolytic aluminum, electrolytic lead, aluminum products, copper products, nonferrous metal powder and manganese, etc. Furthermore, Southwest Aluminum (Group) Co., Ltd. is the largest comprehensive aluminum processing enterprise in Asia with a gross industrial output value of 2.021 billion yuan and sales income of 1.962 billion yuan in 2000.

As another leading enterprise and an old state-owned enterprise in Chongqing nonferrous metal industry, Chongqing Smelter (Group) Corp., Ltd specializes in manufacturing electrolytic copper, electrolytic lead, gold, silver and nonferrous metal powder. Its sales income in 2000 was 80.143 million yuan. In addition, Chongqing Fuling Dongsheng Aluminum Co., Ltd. is also a leading enterprise with remarkable economic benefits. For example, in 2000, the company achieved an output value of 108.5 million yuan and sales income of 180.72 million yuan, and had an annual capacity of 25,000-ton electrolytic aluminum. Its main products include aluminum ingots, aluminum alloy cast rods and aluminum bus, etc.

The major problems existing in Chongqing metallurgical industry are as follows:

• Chongqing steel industry only accounts for a small share in the same trade of China and the comprehensive competitiveness comprised of quality, cost and productivity is poor.
• The main problems in Chongqing nonferrous metal industry include:
• No raw material base in Chongqing ;
• Underdeveloped technologies and equipments in smelter enterprises;
• Low technological contents in products and low utilization rate of aluminum working abilities;
• High electrolytic aluminum production cost due to high electricity price.

In the light of status quo in Chongqing metallurgical industry, the main contradictions include:

• Improper product structure;
• Poor technical pattern and backward technologies and equipments;
• Inadaptation of enterprises' organizational mechanism to the present economic situation;
• Irrational ownership structures.

In accordance with the authoritative analysis, Chongqing nonferrous metal industry will achieve sales income of 5.8 billion yuan, industrial added value of 1.1 billion yuan and export earnings in foreign exchange of 80 million yuan in 2005.