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Ten National Ministries and Commissions Investigated Xinxing Lingyun Company Relocation Project

Views:     Published: 2014-05-14

On May 14, in the spirit of relevant instruction made by leaders of the State Council, 11 Ministries and Commissions investigation group in the State Council of CPC Central Committee led by Deputy Director of System Reform Department in NDRC investigated the entire relocation project of Xinxing Lingyun Company. General Manager of the Group Sha Ming and Vice-General Manager Yangbin attended the investigation meeting and interacted and communicated with the investigation group.

Sha Ming introduced the historic development, basic condition, business layout and development strategy of the Group to investigation group on behalf of Group leaders. He pointed out that as global 500 and top 50 of enterprises under the leadership of Central Government, XXCIG actively coordinates the important strategic thought of General Secratory Xi Jinping on “Coordination development of Beijing, Tianjin and Hebei” and is engaged in the reasonable layout and coordination development of Group industry in Beijing, Tianjin and Hebei. Especially catching the important opportunity of Beijing evacuating functions, transferring industry and radiating elements to Hebei, under the full support and supporting help of Handan Municipal Committee and government, the Group first makes industry structure adjustment and regional layout transfer—“medicine-level sodium bicarbonate” production project is completely transferred to Handan of Hebei. The Group will further implement the coordination development strategy on Beijing, Tianjin and Hebei raised by General Secretary Xi Jinping through taking the entire relocation of Xinxing Lingyun Company as opportunity and pushing forward “strengthening two places and try to make three places” and “two ten-layouts” as its implementation approach, thoroughly implement “153” strategy and Group “1357831” strategy in enterprises under the leadership of Central Government, actively integrate into the overall situation of local development, forge new economic growth pole and cultivate new economic development pattern.

Director of Xinxing Lingyun Company and Xinxing Emergency Rescue Technology Company Chen Hongzhi introduced the entire relocation condition of Beijing Lingyun Company. The first stage of the relocation project engages in putting 60000 tons of high-end sodium bicarbonate into production, the second stage of the project will realize the taxation of profit at above one million yuan, with considerable economic benefit, ecological benefit and social benefit. Currently, through the intense construction, the project has been completed in Handan and entered trial production stage. Original driving force of entire relocation comes from the adaptation of old enterprise to new changes-pulling of Beijing development planning and driving of Group industry layout. Xinxing Lingyun Company is originally as an old-brand enterprise; it has high consumption on energy and resources due to its aged production equipment; besides, after Shougang Group was relocated, its supporting function has been imperfect, so it is no longer suitable to develop within Beijing’s layout. XXCIG actively coordinates and cooperates with Fengtai District of Beijing and Handan government of Hebei; through profound survey and investigation, it finally determines to entirely relocate Beijing Lingyun Company to Handan Wu’an Industrial Park for Newly-developing Cast Pipe, centering on fully displaying the comparative advantage of two places, collaboratively building industry chain in Beijing and Hebei: the first is to arrange research and development experimental base for new products in Fengtai District relying on the powerful technology and talents advantage of capital; the second is to lay out production and manufacture base in Handan relying on the solid industrial base advantage, raw material advantage and regional advantage for traffic of Hebei and making use of the favorable investment environment of Hebei. Especially Wu’an Area of Handan is considered the gathering place for steel and metallurgy industry and the concentration place for discharging carbon dioxide; the project makes use of carbon dioxide discharged by the core enterprise of XXCIG, Newly-developing Cast Pipe Stock Company as the raw materials in industrial production through gas-supply pipeline; meanwhile, it collects and utilizes waste heat and steam condensate produced in iron-making and steelmaking process to reduce production cost. In addition, Shahe in Hebei is the collecting and distributing center for sodium carbonate in China, and relocating it into Handan could reduce the procurement and transportation cost for raw materials of sodium carbonate. Through scientific and reasonable industry layout and product innovation, industry upgrading and capacity expansion, the project could promote the core competitiveness of enterprise and enhance the market share of products. The principal stresses that the relocation is actually the simultaneous “transformation” in two places. The project is beneficial for Beijing to improve economic structure and clear out precious land resources to develop high-end industry. Meanwhile, it could still attract personnel of Beijing Lingyun Company to get jobs in Handan, effectively drive and promote the strength and level of local medicine and chemical talents, accelerate the industry transformation and upgrading in Hebei to truly realize collaboration and greening development of Beijing and Hebei, integration between enterprise and region and mutual benefit.

The successful relocation of enterprise depends on the favorable supporting policies of government in two places. The Standing Deputy Mayor of Handan, Hebei Cao Ziyu and Deputy District Head of Fengtai District, Beijing Liu Shuping respectively introduced relevant condition on matched support of government in two places and relocation of service enterprise. The district government of Fengtai District Committee, Beijing and the municipal government of Municipal Committee of Handan, Hebei will not be interrupted in cooperation and not be disconnected in service conveying; two places provide preferential policies and high-quality service in production, operation and living, which reflects better guidance and pulling function. The government of Fengtai District in Beijing transfers the enterprise in the subordinate of district and the organic unit of land over one thousand mu to XXCIG for free; it has established district-level leading groups, and formulated regular communication system with XXCIG to solve the problems in enterprise relocation and steady transition of personnel in coordination; service with Handan butt government, strengthen cooperation and collaboration, keep government service connected; help enterprise strive for preferential policies like the adjustment funds on industry structure of city center; strive for favorable condition in developing emergency industry in the original site after enterprise is relocated and solve problems after relocation. Currently emergency innovation park has been brought into national self-dependent innovation demonstration area of Zhongguancun and emergency industry alliance has become national level trial alliance. Handan government of Hebei provides capital support by the project entering Hebei in central enterprises; the project content listed into conforming to energy conservation and commission reduction and comprehensive utilization of resources are granted tax exemption; provide green channel and simplified approval procedure for project construction and license transfer; coordinate Hebei to provide recognition on relevant qualifications of Beijing dispatched personnel; provide support for the recruited employees of the project in Hebei, etc. Under the support of government in two places, through the reasonable incentive mechanism and competition mechanism and sharing mechanism for development after relocation, finally over one hundred personnel are willing to work in Hebei, so the smooth relocation and reasonable arrangement for personnel are realized. Enterprise also formulates a new development planning—forge world-class and China first production, research and development base for medicine-level sodium bicarbonate.

    Lian Qihua highly praised the entire relocation of project. He viewed that Beijing Lingyun’s entire relocation planning of XXCIG is a fresh and typical example of implementing the coordination development strategy on Beijing, Tianjin and Hebei. He expressed that the investigation group will carefully extract the project relocation experience and government’s experience in system, mechanism and service, deeply investigate and understand system, mechanism and difficulties or problems in the process of relocation, raise the policy opinions in system, mechanism and reform which are beneficial for implementing the coordination development strategy on Beijing, Tianjin and Hebei in research through interaction of government and enterprise and combination of superiors and subordinates, break barriers, build platform for Beijing industry transfer, and promote the coordination development strategy on Beijing, Tianjin and Hebei well and fast implemented.