China Cement Net: Yao Jixin Breaks the "Cage" for the Development of State-owned Enterprises and Writes a New Chapter for the Healthy Development of the Industry

2022-06-02 17:18:16

He smashed the cage that troubled the development of state-owned enterprises and let the lion conquer a wilderness.

Cement is a great cause, which bears the people's yearning for a better life and lays the foundation for social and economic development. In the past decades, the development of domestic cement industry has experienced the transformation from vertical kiln process to new dry process, and China's cement industry has gradually realized the transformation from backward to leading in the world, and cement has become the most competitive industry in the field of basic industry in China.

As the old saying goes, the current situation creates heroes. With the rapid development of the cement industry, a number of outstanding pioneers have emerged in the industry; Of course, heroes also create the current situation, and cement workers who conform to the development of the times have changed the development process of China's cement industry and accelerated the transformation and development of the cement industry with their enthusiasm and great love for the development of the industry and enterprises.

In the near future, China Cement Network will review those industry figures who have made outstanding contributions to the development of China's cement industry from a third-party perspective. Today we bring you " of China National Building Material Group Https://img7.ccement.com/richtext/img/evs8sm7qit1654162150748., he used a group of rapidly growing data to tackle the problem of how to combine socialist public ownership with market economy. With the rapid development of Sanshi Group, the mode of "state-owned private" and "mixed economy" has come into reality, and the third way of state-owned enterprise reform has been explored.

He actively complied with the trend, under the general trend of joint reorganization of the cement industry, let the "ego" of Sanshi Group join the bigger "ego" of China Building Materials Group, promote the cement industry to embark on the road of healthy development, and gradually realize the strategic goal of "from big to strong" of China's cement and building materials industry.

He is Yao Jixin, Vice Chairman of Southern Cement of China Building Materials Group, Secretary of the Party Committee and Chairman of Zhejiang Sanshi Group. So, what kind of magic is it that enables Yao Jixin to lead the "three lions" to create a myth of state-owned enterprises in Zhejiang, where private capital is highly developed? What kind of belief supports him to come forward and join the historical process of Southern Cement and compose a brilliant chapter of high-quality development of cement when the industry is in trouble? Born in 1958, Yao Jixin spent his childhood in Jiangshan Cement Plant, the first modern large-scale cement enterprise in Zhejiang Province. Of his father's eight children, he was the only one who inherited his father's mantle. In 1976, Yao Jixin, who graduated from junior high school, started as an ordinary apprentice and gradually grew into the youngest leading cadre of state-owned enterprises in the province at that time -- the first deputy director of Jiangshan Cement Plant.

Opportunities are often reserved for those who are prepared. Yao Jixin waits for every opportunity with rich practical experience and profound knowledge and theory. In 1988, the Zhejiang Provincial Party Committee and the provincial government held the first open selection of leaders of large state-owned enterprises in the province. He signed up for

on the cliff has experienced the dilemma of "dead end" and the important opportunity period of expansion and development. In this process, Yao Jixin, as the "master", devised strategies and wrote legends. Back in

1997, as one of the large provincial groups in Zhejiang Province, the output of Zhejiang Sanshi Co., Ltd. was only 720,000 tons, while the loss reached 7.39 million yuan, and "Sanshi" had reached the cliff. At that time, the provincial government pointed out a way for the three lions: if you can do it, you can do it, if you can't do it, you can sell it, and contacted the merchants to buy the "three lions".

At this time of survival, Yao Jixin, who has nearly 20 years of leadership experience in state-owned enterprises, took office and became the chairman of Sanshi. Faced with the operational difficulties of the enterprise, he slept at night and thought hard about the way to break the situation.

In an activity organized by Zhejiang Entrepreneurs Association, Yao Jixin met Lu Guanqiu of Wanxiang Group. They represent private enterprises and state-owned enterprises respectively. It was an unforgettable encounter in his life, and what Lu Guanqiu, a private entrepreneur, said to him made him open.

"State-owned enterprises are tigers and lions, but they are all in cages.". Although our private enterprises are monkeys, in the wilderness of economic development, monkeys can work freely, so tigers and lions can not fight monkeys.

Train of thought is the way out. Lu Guanqiu's words made Yao Jixin's thoughts light. Therefore, he began to re-examine the "tiger" of the three lions, and carried out a big discussion and situation analysis in the enterprise. Yao Jixin believes that the loss-making "Three Lions" still have five advantages, namely, management advantage, capital advantage, scale advantage, brand advantage and resource advantage, while "backward ideas", "remote geographical location" and "backward production technology" are the disadvantages that drag down the "Three Lions". After that, a reform plan to "break the iron cage" and foster strengths and circumvent weaknesses in response to the plight of the three lions was introduced. At the same time, the company's staff Congress adopted a 16-character reform plan of "reducing costs, controlling costs, streamlining institutions, transferring posts and diverting staff". In terms of

personnel organization, in 1998, Sanshi's job transfer and diversion work was formally implemented, whether leading cadres or ordinary workers, men aged 55 and women aged 45 were all "off duty". The action of streamlining the organization is to streamline 15 offices into seven departments, one office and two companies. In terms of incentive policy, the new practice of "post star management" and "cost veto" has been introduced, which further improves the original star assessment system and greatly improves the efficiency of organizational management. In terms of

operating mechanism, the marketing mechanism of township enterprises and private enterprises has been boldly introduced, the market has been subdivided, the marketing network has been established and perfected, and the risk mortgage contract linking salary, bonus, business expenses with performance has been carried out for marketing personnel, which has greatly mobilized the enthusiasm of marketing personnel. In the environment of excess cement market, Sanshi has achieved a short supply of products, while the recovery rate of accounts receivable has reached more than 100%.

Under the guidance of open operation ideas, the reform led by Yao Jixin produced obvious results, and the "Three Lions" realized turning losses into profits in the last four months of 1997. In 1998 and 1999, the "Three Lions" made great progress for two consecutive years, doubling their annual profits.

The "Three Lions", once the "Sleeping Lions", began to roar loudly. At the end of

last century, after the completion of enterprise reform, the three lions immediately ushered in another important development node. Affected by the financial crisis in Southeast Asia, macro-control and monetary tightening, the state began to reduce cement production capacity on a large scale, and the cement industry, as the vane of economic development, fell into a low ebb. Should we face the difficulties or hold the stall? "The thoughtful Yao Jixin boldly decided to go against the tide at this time. In a short period of two years, Sanshi only used nearly 60 million yuan of capital to merge and invest in the way of debt holding." It has merged five enterprises with different ownership systems, including Huzhou Daqiang Group, Lanxi Lidun Company and Hangzhou Xizi Cement General Factory, and controlled 1.2 billion yuan of social assets with 200 million yuan of state-owned authorized assets. The annual cement production capacity has rapidly expanded from 1 million tons to 3 million tons, ranking among the top three in the national cement industry. The speed of development in the past two years has exceeded that in the past 20 years.

Through low-cost expansion and the integration and strengthening management of the merged and acquired enterprises, the "Three Lions" have only completed the first step to become bigger and stronger. However, these merged enterprises are generally backward in technology, and it is urgent to transform traditional industries with advanced technology.

To transform traditional industries with high and new technology, a large amount of capital is needed. Even after the investment cost has dropped dramatically, the last new dry cement production line with a daily output of 2500 tons will require more than 200 million yuan of investment. Having just completed a series of mergers and acquisitions, as well as the "downhill to the city movement" of "moving the capital" from Meishan in northern Zhejiang to Hangzhou, what can "Three Lions" do for technological transformation? With the consent of the government, Sanshi Group absorbed the funds of investment companies and foreign-funded enterprises, state-owned, private and foreign-funded together, and the road of diversification of investment subjects was suddenly opened.

In 2001, Sanshi Group's first new dry process production line with a daily output of 2500 tons was officially ignited. In 2002, this production line with a design capacity of 740,000 tons produced

2007, when Zhejiang cement industry suffered from weak market demand, serious overcapacity and vicious competition, China Building Materials began to decisively promote the establishment of Southern Cement. The famous "Wangzhuang Talks" accelerated the historical process of leading cement enterprises in Zhejiang Province, such as Sanshi, Hushan and Jianfeng, merging into Southern Cement.

Yao Jixin is deeply aware that after the adjustment of the technical structure of the cement industry in Zhejiang, the adjustment of the organizational structure is imminent. China Building Materials has created Southern Cement through joint reorganization, opening up a new business model for the adjustment of the organizational structure of Zhejiang cement enterprises, which is in line with the internal logic and objective needs of the development of the industry.

As a result, Yao Jixin led the Three Lions to actively conform to the trend and let the Three Lions Group join the China Building Materials Group. Sanshi Group and China Building Material Group cooperate in talent, capital, technology research and development strength, through joint reorganization to achieve scale, through market coordination to raise prices, through technological progress and management improvement, to achieve energy saving and emission reduction, reduce costs, and reflect value in the capital market. After the cement plate

of Sanshi Group entered the Southern Cement Group, its development did not stop. According to the "three new" strategy of vigorously developing new building materials, new houses and new energy materials put forward by China Building Materials Group, the enterprise has set a new goal of "transforming development and reshaping brilliance". After entering Southern Cement, the original Sanshi Enterprise has also achieved greater development: Jiande South and Guangde South continue to play their original management advantages and constantly rewrite new performance peaks; Fuyang South has also created a new historical high kiln operation rate and achieved substantial profits under the overall planning of regional companies. Through management integration and resource optimization, Sanshi Co., Ltd. has brought a new look to the old state-owned enterprises.

"Running a business is running the future." Yao Jixin, an outstanding leader of state-owned enterprises, with a forward-looking vision, extraordinary courage and pioneering mind, awakened a long-sleeping "lion", opened up a "state-owned private" and "mixed economy" model, promoted the integration and reorganization of the cement industry, and drew a blueprint for high-quality development.

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He smashed the cage that troubled the development of state-owned enterprises and let the lion conquer a wilderness.

2022-06-02 17:18:16

According to the information of the State Intellectual Property Office, Tangshan Jidong Cement Admixture Co., Ltd., Handan Jinyu Taihang Cement Co., Ltd., Qian'an Jinyu Shougang Environmental Protection Technology Co., Ltd., and Chengde Chengjin Environmental Protection Technology Co., Ltd. The publication number is CN122748962A, and the application date is July 2026.