Li Shuirong: "Real Prosperity" Behind The List

At the end of August and the beginning of September, the top 100 list of all kinds of enterprises competed to announce a lively scene: September 2nd, the list of "2018 Chinese enterprises 500 strong" was released.

In this list, the leading enterprises of textile and garment industry represented by Shandong Wei Qiao, Hengli Group, Xinxing Hua, Hai Lan group and Rongsheng holding company all listed on the list. In the field of chemical fiber manufacturing, Rongsheng holding company is ahead of many other similar enterprises, second only to Hengli Group.

It is worth noting that in the list, private enterprises also occupy half of the world, with 237 families.

The Hengli Group and Rongsheng group, which are listed on the list, are the representatives of the first tier enterprises in the field of chemical fiber production in China. At the same time, they are also typical representatives of the chemical fiber industry since the reform and opening up.

There is no doubt that during the 40 years of reform and opening up, the rise of private enterprises in the textile industry has become a flood of times.

In August 29th, the National Federation of industry and Commerce issued the "2018 China private enterprises 500 strong" list, of which Zhejiang Rongsheng Holding Group Co., Ltd. ranked 36, in the field of chemical fiber manufacturing is still proud of the tide.

Undoubtedly, private enterprises have become the mainstay of China's chemical fiber manufacturing industry, and even occupy an important position in global competition.

And in Hengli, Rong Sheng, Tong Kun, Heng Yi, Sheng Hong, these large private chemical fiber giants, Rongsheng seems to have always been independent, always on the sidelines of peers and hesitation when they have already heroic trek on the road.

From the original "vertical and horizontal" development strategy as a guiding principle, "go all the way" to move upward, to the beginning of labor cost rising, to make a decisive decision to carry out "machine substitution", and to invest 1730 billion yuan to build an annual output of 40 million tons of Zhoushan refining and chemical integration project.

"Intruder": private petrochemical giant with the trend

There are also a list of the top two lists: "2018 China Petroleum and chemical enterprises 500 strong list", which is jointly issued by the China Petroleum and Chemical Industry Federation and China Chemical Industry Management Association. Among them, Sinopec, PetroChina and CNOOC "three barrels of oil" also have the names of Hengli petrochemical, Rongsheng holdings, Hengyi group, Sheng Hong petrochemical and so on in the field of textile chemical fiber.

Among them, Rongsheng holding company ranks ninth in number, and is the first to enter the petrochemical refining and chemical industry from the chemical fiber processing industry.

The upward trend of chemical fiber enterprises is a major trend in recent years.

Especially after several decades of development, the leading industries of these industries have embarked on a continuous development mode from downstream chemical fiber production to upstream oil refining, and this development mode has been proved to be more risk resistant in many industries' cyclical fluctuations, and is more conducive to stable development of enterprises.

"Before 2015, the most important Sinopec industry is Sinopec and PetroChina. They have crude oil production, refinery bases and huge gas stations." an oil central enterprise expert once said, "but before and after 2015 years, the State Council began to let Rongsheng petrochemical, Hengli petrochemical and other private enterprises join the refining and chemical industry, and let them have great opportunities for development, which was impossible in the past."

As a private enterprise, it has entered the refining and chemical industry with state-owned enterprises and central enterprises as the main body in the way of intruders. In recent years, Rongsheng has attracted much attention from the market.

The most important reason for its high-profile attention is its Zhejiang Petrochemical's refining and chemical integration project.

Zhejiang petrochemical refining and chemical integration project is invested by Zhejiang Petrochemical Company Limited, and Zhejiang Petrochemical Co., Ltd. is a mixed ownership enterprise formed by private enterprises Rongsheng Petrochemical (share 51%), provincial state owned enterprises, Juhua Group, private enterprise, Tong Kun shares and Zhoushan Haichang joint venture company. Its investment and construction of 40 million ton / year refining and chemical integration project is built in accordance with the overall requirements of "refining and chemical integration, large-scale equipment production, cleaner production and high-end products", with a total investment of 1730 billion billion, and the total investment of the government's ancillary works is over 200 billion.

The project is divided into two phases: 20 million tons of crude oil per year, 5 million 200 thousand tons of aromatics and 140 tons of ethylene per year. It is a landmark project for the private capital entering the petrochemical industry. It is far beyond the largest refinery and Sinopec in Zhenhai Refining and chemical industry in China. It is currently the largest refining and chemical integration project in China, and is also one of the largest petrochemical integration projects in the global industry.

Zhejiang petrochemical Zhoushan project construction site

In fact, the reason why the private giants are going to grab "three barrels of oil" and the business of local refineries, and get the upstream raw material of the chemical fiber industry chain is one of the important reasons for PX.

PX is an important raw material for the upstream of the chemical fiber industry chain. Due to many reasons, the domestic PX capacity is seriously insufficient. PX is in short supply in the long run, and its external dependency is nearly 60% in 2017.

And because the supply exceeds demand, the gross profit margin of PX products is higher than that of PTA.

At present, Rongsheng Petrochemical is the only private chemical fiber giant capable of producing PX. Its annual report data show that the gross profit margin of aromatics (including PX) business is 12.88% much higher than that of PTA PTA 3.73%.

Therefore, the construction of refining and chemical projects will not only profoundly change the current situation of high dependence on PX, but also enhance the performance of chemical fiber enterprises.

Rongsheng holding 51% Zhejiang petrochemical Zhoushan project is currently the world's largest refining and chemical integration project.

As a private enterprise, why does Rong Sheng dare to set foot in the petrochemical industry, which is almost monopolized by central enterprises? For this reason, Li Shuirong, chairman of Zhejiang Rongsheng Cmi Holdings Ltd, said: "stepping into petrochemical industry, especially refining and refining, is a strategic plan for the prosperity of the industrial chain. It can also be regarded as a long-term dream of Rongsheng.

The courage to get involved in this industry is mainly based on three aspects: first, we have confidence in our strength.

In the past 30 years, Rongsheng has formed a complete set of industrial chain through its own continuous efforts. We have inherent advantages in digestion of products and digestion of market fluctuations. Besides, we have been engaged in petrochemical and chemical fiber industry for a long time, and have accumulated considerable experience in the design, construction and management of large scale petrochemical plants. Thirdly, thanks to the institutional advantages of private enterprises, we also have certain advantages in terms of cost, efficiency and employment.

Two, we have confidence in the future of the industry.

At present, the petrochemical industry is still an industry that can not be completely replaced. There is a huge market prospect for petrochemical and downstream supporting industries, both domestic and abroad.

Three, we want to do something for China's petrochemical industry.

At present, the development level of China's petrochemical industry is not high, especially for high-end petrochemical products. As one of the leading enterprises in the petrochemical and chemical fiber industry, we feel it is also our duty to do something to improve the development level of China's petrochemical industry.

Li Shuirong said: "Rong Sheng not only strides forward on his own ideal road, but also increasingly assumes the glorious mission of revitalizing the national industry."

"Stick to it": the pursuit of excellence in polyester filament giant

From the small weaving factory to the private petrochemical and chemical fiber giant, Rongsheng Petrochemical has gone through nearly 30 years of ups and downs. Its main business started from the polyester fiber business and became the first listed company in China to have the integrated production chain of "fuel oil, naphtha aromatics PTA polyester spinning plus bombs", and Rong Sheng fortunately found the direction of development and insisted on it all the way.

In the 2017 year of the year, Rong Sheng won the "Zhejiang manufacturing" certification. This is a high degree of recognition for Rongsheng's product quality and brand status, and has far-reaching significance.

Before "made in Zhejiang", Rong Sheng has won the honor of Zhejiang famous brand product, China famous brand product, national inspection free product, Zhejiang famous trademark and China well known trademark.

Li Shuirong said: "Rong Sheng has been able to maintain stable development trend for many years, no matter how the market rises and falls. Besides scientific enterprise development decisions, it is also closely related to good product quality and market reputation.

Zhejiang is a strong province of manufacturing. "Zhejiang manufacturing" represents strong and strong. We are very confident that we will win greater trust in the market.

It is reported that "made in Zhejiang" has a very comprehensive and high standard certification standard, which covers all aspects of product quality, process management, enterprise culture, innovation level, social responsibility and so on. Implementation of these standards itself is a process of upgrading for enterprises. After being certified, the work of enterprises will continue to be perfected and promoted.

Take Rongsheng as an example, with the "Zhejiang manufacturing" certification as the turning point, the company immediately carried out a series of management improvement work, such as enterprise culture system reengineering, enterprise development strategy certification, and enterprise research platform upgrading. Li Shuirong said: "for enterprises, obtaining" Zhejiang manufacturing "certification is not an end, but a new beginning.

The certification of "made in Zhejiang" and Rongsheng has had a strong relationship with "good products" throughout the years.

It is reported that in order to continuously produce good products in the field of polyester filament, enterprises have paid great attention to the development of research and development, and have built high-tech innovation centers, academician expert workstations, enterprise technology centers, postdoctoral scientific research workstations, and other scientific and technological innovation platforms, and have established cooperative relations with universities such as Zhejiang University, Zhejiang Sci-Tech University and Tianjin University of Technology.

New technologies and products come out every year.

At present, in the field of chemical fiber, Rongsheng has been involved in the revision of 10 national standards, 15 items of industry standard and 2 items of "made in Zhejiang" standard.

Rongsheng's "polyester low elastic yarn" was included in the second batch of "Zhejiang made" standard formulation plan in August 2016 in 2016 years. In two years, the issuance of the "Zhejiang manufacturing" standard issuing and Certification Implementation Rules was released. In 2017, 12 months passed the "Zhejiang manufacturing" certification, marking that Rongsheng "polyester low elastic wire" products reached the domestic first-class and international advanced level.

Li Shuirong said: at the next stage, Rongsheng will follow the requirements of "good manufacturing + good products" made in Zhejiang, and strive to make the main products of the company to realize the formulation and certification of the "Zhejiang manufacturing" standard.

Innovator: Zhejiang textile giant

2018 is the 40th anniversary of reform and opening up. For Rongsheng, it is undoubtedly the beneficiary of the bonus of reform and opening up.

Li Shuirong said: "my personal history of entrepreneurship and the development history of Rongsheng are inseparable from the great environment of reform and opening up. In general, reform and opening up give us opportunities and motivation.

I moved from the original individual carpenter to the timber business, which was influenced by the environment of reform and opening up. After the founding of Rongsheng, we moved from the initial weaving to a gradual upward movement to add bombs, sliced spinning, polyester, PTA, aromatics to the nearest refining and refining industry. The extension of each industry chain was accompanied by the gradual liberalization of the relevant national industrial policies and the increasing recognition and support of private enterprises.

Especially in polyester, petrochemical and other industries, private enterprises in the past were difficult to set foot in. With the deepening of reform and opening up, our private enterprises are gradually eligible to participate in these industries.

The 4000 Zhoushan million ton / year "integration project" is coming into being under the background of the state's advocacy of developing a new mixed ownership economy. It has been strongly supported by governments at all levels. If there is no policy of national reform and opening up, it is almost impossible for private enterprises to do such a project.

It should be said that Rongsheng's road has both opportunities and innovations.

As an outstanding representative of Zhejiang businessmen, Li Shuirong once said, "others fear, I am greedy."

Looking back at Rongsheng's development history, every step of its bold innovation is almost the initiator of the industry.

From 1998 to 2018, Rongsheng group achieved a leap from total assets of 100 million yuan to 1000 billion billion total assets. During this period, Rongsheng took a road of "high input and high output", and behind the high investment is potential high risk. Who gave Rongsheng such courage?

Li Shuirong said: "I must admit that I do some gambling in industry, and I have some risky decisions to make.

100% it is impossible to win. The key is gambling.

And how to grasp the "gambling time"? Li Shuirong said: "we need to study and understand the industry.

I have always said that doing business is bound to be risky. If there is no risk, everyone will do business. That is impossible.

But risk must be controlled, not blind.

The most important thing is to do two things well: first, we must have sufficient research and judgement on the external environment, including the industry market and the state's macro policies. Only when we have accurate judgement on the industry, can you know your future development and direction of innovation. We have put forward the idea of selling products from the very beginning. This is the reason. In addition, we should also pay attention to the macro policies of the country. Only when it is in line with the development track of the country can enterprises develop for a long time and even seize the opportunity of development.

Second, we should fully understand and control the enterprises themselves.

Find out where your strengths are, how big they are and how big they are.

In addition, we must adhere to the main industry, down-to-earth, and do a solid job in our own brand.

Each industry has a leader, and Rongsheng is the leader of the development of China's chemical fiber industry. What is the most obvious characteristic of the leader? That is the persistence of innovation.

General secretary Xi Jinping made a high generalization of the "Zhejiang spirit" in 12 words at the "G20 Hangzhou summit".

As an outstanding representative of Zhejiang businessmen, Li Shuirong said: "these 12 words have a very general survey of the spirit of Zhejiang. Zhejiang businessmen, including our Rongsheng, can occupy an important place in the national business community. Insisting on hard work, insisting on taking the lead and innovating are very important two factors.

To do things is to insist on making the main business bigger, not to do this today, to do that tomorrow; innovation is to constantly seek breakthroughs, and constantly seize the opportunity.

From "intruder" to "adhering to" and then to "innovator", every one is prosperous, and every aspect is the essential quality of Rongsheng to achieve today's success.

At present, China is the largest producer and consumer of chemical fiber in the world. The responsibility for upgrading and development of the chemical fiber industry has been on the shoulders. We expect and believe that with the promotion of leading enterprises such as Rongsheng, the strong country of chemical fiber is just around the corner.