Interview with Mr. Liu Baikuan, Chairman of ACRI and President of PRCO

2014-08-04

Refractories Window, as the official website of ACRI (the Association of China Refractories Industry), interviews Mr. Liu Baikuan, Chairman of ACRI and President of PRCO (Puyang Refractories Group Co., Ltd) on the influences of business management on refractories industry under the new situation.

 

Refwin: Under the current situation, China refractories industry is likely to face tougher difficulties. How long do you think this circumstance will continue?

Mr. Liu: Under the current state, China real estate industry needs continuously adjust, which will has a great impact on steel and construction industries. As the two major consumers, facing with over capacity, steel and construction industries also need making appropriate adjustments, which may last 2-3 years I suppose.

 

Refwin: What do you think refractories enterprises should pay attention to in terms of business management under the current situation? How to enhance the comprehensive competitive strength?
Mr. Liu: At present, China refractories industry is facing several challenges, like operation difficulty, disorder competition, long period for payment collection, higher requirement for cost performance from downstream consumers, unsustainable development caused by lower industry concentration and disorder price competition, increasing cost pressure, RMB appreciation unfavorable to exporters, etc.

So, in my view, there are some key points should be focused on in order to realize the healthy and sustainable development of China refractories:

1) To lay emphasis on technology innovation, including R&D, process innovation, equipment improvement, and original technology and products development

Enterprises will drop behind without enough technical support, especially in hard times. In the meanwhile, the enterprises should enhance foundation works, like R&D, continuous technology transformation and technology innovation of equipments which is of great importance for product quality. We should strengthen original technology and own intellectual property, in particular for larger enterprises.

2) To improve management level, containing team building, production management, equipment management, quality control and cost control, and also to make management systematized, system processized, process informationized and information networked …

3) To pay more attention to energy conservation and environmental protection

4) To strengthen the cooperation between enterprises

5) To establish large-scale corporate group with international competitiveness

Only the comprehensive strength is increased, can enterprises deal with and adapt all kinds of changes, and then achieve sustainable development.

 

Refwin: As both Chairman of ACRI and President of PRCO, how do you think of the problems faced by most enterprises at present? And how to resolve them?

Mr. Liu: Steel and other high temperature industries lift their requirements for cost performance of refractories with improved performance, longer service life and at lower prices. China refractories industry is, however, in the status of low concentration ratio of being as a big industry but with lots of small enterprises. The overall sector is in a state of excessive and disordered competition due to overcapacity. The poor market has badly influenced the profits and payment withdrawal, and will accelerate the adjustment and reconstruction of refractories enterprises on the other hand. In order to achieve sustainable development, refractories enterprises should strengthen not only the management and technology innovation, but also the cooperation between enterprises, taking the capital as the tie, to enhance the unite, and to go through the difficult period.

 

Refwin: As we know, MIIT and ACRI have put forward the goal to establish world top refractories enterprises. Also, you had ever mentioned to make domestic enterprises become world fist class enterprises. What do you think refractories industry and enterprises should do? How to achieve these goals?