Pursue high degree of professional proficiency to forge Fangyuan
The one who tries his best will make a success, and the one who diligently works will realize his goal. The road to forge good quality for an enterprise is arduous, which needs managers to map out a strategy, technical personnel to dedicate themselves, and front-line workers to work with great care. Only if we all keep quality in mind, bear a sincere heart, constantly innovate, challenge, cooperate, make efforts, and endure the loneliness, we will pursue high degree of professional proficiency with time passing by. Now in Dongying, Fangyuan company has became an enterprise representative that pursues good quality and professional proficiency.
In December 2016, the 6th Shandong Governor Quality Award was publicized. Fangyaun company smoothly passed several links such as qualification examination, material review, site assessment, statement and answering, media publicity, stood out from 32 application units and became one of five Shandong enterprises which won the award. On May 25th of this year, the deputy secretary of Shandong Party Committee and governor Gong Zheng personally gave the governor quality award medal to our group chairman Cui Zhixiang at the symposium for the promotion of Shandong enterprise quality brand.
Pursue good quality with good methods. The assessment experts fully confirmed our advantages in six aspects including corporate culture construction, technological research and innovation, infrastructure upgrading, circular economy improvement, financing innovation and informatization platform building. As a leading backbone enterprise in Dongying nonferrous industry, Fangyuan company has much experience that is worth learning regarding how to forge an enterprise based on quality and prosper an enterprise based on brand.
The first method is to make independent innovation and develop unique technology.
All smelting technologies were mastered by western countries before 2008. In December 2008, Fangyuan and ENFI jointly researched oxygen-enriched bottom blowing technology for polymetallic trapping with China independence knowledge property and made a great success. After hard working, Fangyuan transforms this carbon-free smelting technology into large production capacity. The self-developed two-step copper smelting technique shortens the process of producing copper cathode from three steps to two steps, decreases the comprehensive energy consumption and operation coat by over 15% than traditional process, and saves 500 yuan per ton. This technique is listed into key common technology development guidance of Made in China 2025, and is recognized as the fourth-generation metallurgical technology in the world and the first chosen technology for the green development of copper industry.
In addition, the oxygen-enriched bottom blowing technology for polymetallic trapping realizes closed circulation and zero-emission, forming “6+1” standardized industrial chain mode, of which “1” refers to the bath smelting technology with own independence knowledge property, namely, Fangyuan bottom-blowing carbon-free bath smelting technology; “6” refers to six circular economy standardization industrial chains and supporting chains with Fangyuan bottom-blowing carbon-free bath smelting technology as the core.
Because the whole process is totally closed, the smoke pollution in the production process can be reduced to minimum. At the same time, the major component of smoke is sulfur dioxide, so Fangyuan invests a set of process to make sulfuric acid, and the by-products are rated national first-grade industrial sulfuric acid. For the waste acid that can’t be completely disposed, Fangyuan creatively researched “waste acid treatment technology for purifying heavy-metals smelting off-gas”, which purifies and recovers waste acid and finally makes waste acid qualified. Gold and silver can be extracted from copper anode slime in waste; flue ash can be used as the raw material for the comprehensive recovery plant; scattered metals can be comprehensively extracted to produce high value-added by-products such as gold, silver, sulfuric acid and fine selenium. Smelting slags can be turned into raw material after beneficiation and the rest slags can be sold to cement factories, which can improve the raw material quality because slags have high iron content. This method of making full use of all materials makes Fangyuan get rid of environmental protection pressure and obtain favorable economic benefits, which overturns traditional ideas. Fangyuan becomes the national demonstration unit from a pilot unit, gets promoted to the whole nation, and becomes the benchmark and model for the nonferrous industry.
Bearing the spirit of innovating independently and overcoming difficulties, Fangyuan has grown from a local small company into the fourth largest Chinese copper enterprise and an internationally well-known technology-service provider, which owes to the constant investment in scientific and technological development. Fangyuan establishes transformation system and scientific and technological platforms such as national-level technology center, national-level laboratory, provincial-level engineering technology center, postdoctoral centre, accelerates technology research and development and achievement transformation, thinks globally to integrate resources, establishes strategic cooperation relationship with Central South University and University of Queensland to jointly make technological breakthroughs, introduces 52 high-level talents including professor Zhao Baojun who is one of “The Recruitment Program of Global Experts” and “Taishan Scholars” as well as Guo Yixue who is one of Changjiang Scholars.
In recent three years, Fangyuan applies for 97 patents; undertakes one project of National Torch Plan, one key special national and international cooperation project, one 863 scientific and technological research project; overcomes industrial difficult problems; makes 47 major scientific and technological achievements, of which 3 projects reach a leading level in the world and 11 projects reach domestic advanced level; transforms 21 scientific and technological achievements.
The second method to control quality strictly and seek for perfection.
In fact, the consistency of Fangyuan is quality. Founded in 1998, Fangyuan actively participated in the work of striving for the Quality Award in order to promote the management level. Dongying city paid high attention to this and organized leaders at all levels and the Quality control system to assist Fangyuan to strive for the Quality Award. Fangyuan Company won the first session of Dongying Mayor Quality Award in 2011, the nomination award of Shandong Governor’s Quality Award in 2014 and the advanced enterprise for implementing excellent performance mode in 2015. Along with the advancement and implementation of striving for the award, our production, operation and management have great progress. Based on this, Fangyuan strove for Shandong Governor’s Quality Award again in 2016, and finally won the prize after qualification examination, material assessment and the locale evaluation.
Enterprise management is the foot-stone for a company’s smooth and healthy operation, and making progress. Fangyuan makes progress in the quality of products, equipment transformation, standard setting and benefit management depending on its excelsior management mode.
Through the improvement of management system, test work, product quality, service quality and process parameter, Fangyuan’s quality work has an integral upgrade. The assay of main product copper cathodes increased to 99.998PCT from 99.95PCT which is the national standard, and last year the assay increased to 99.9992PCT. Fangyuan surpasses his opponent and the product copper cathodes continue to win the Golden Cup Award for 9 consecutive years. Fangyuan’s smelting technique is the most advanced in the world and it is widely used in the world and it is even used in gold smelting and steel smelting. In the information construction, Fangyuan invests more than fifty million yuan to operate BS, SRM and other systems, invites the famous management consulting company, Deloitte to instruct the work and cooperates with Oracle to use the most advanced hardware and software facilities. Comparing with other nonferrous industry, Fangyuan’s information construction and application takes the leading position in China and some projects take the leading position in the world, which plays a positive role in the quality management.
Meanwhile, Fangyuan continuously transforms and improves the infrastructure. Through the transformation of cooling equipment, Fangyuan changes the converter water jacket from original steam jacket to forced circulation jacket; the cooling water inside is used as desalted water in the heat recovery boiler, which saves cost and extends the life of equipment. Besides, the environmental upgrading work for the refining furnace not only guarantees the product quality, but improves the production efficiency and reaches the effect of environmental protection and energy saving. The achievements in equipment transformation make positive contributions to the energy conservation and emission reduction, production efficiency and product quality improvement.
Standard represents the most advanced level of one industry. The one who can master the core technology, the one can master the speaking right in the market. And his technology will be the standard. In recent three years, Fangyuan led to drew out twenty two national standards and drafts out one Shandong standard, makes four hundred and ninety enterprise standards and makes positive contributions to the construction of Shandong Standard. Because of the mode of standardization of recycling economy invented by Fangyuan, Fangyuan is identified as the first and the only one national demonstration unit by National Development and Reform Commission and National Standard Commission, and Fangyuan becomes a model in nonferrous industry. Fangyuan seizes the opportunity of the country encouraging developing the group standards to develop the standards about energy conservation, environment protection, resource utilization and other aspects; drafts out The Standard of Energy Consumption in Copper Smelting, The Standard of Hyperpure Electronic Copper, holds the power of speech in nonferrous industry and becomes the bellwether.
Under the general background of global downturn and depressed nonferrous industry, Fangyuan maintains sustained growth in the profits through integrative operation. The profit reaches more than one point two billion yuan each yeah in recent three years and surpasses Jiangxi Copper in 2015. Each financial index is good.
The third method to output key elements and make open development
Good quality and being excellent not only request one enterprise only to make progress but also the contributions to the industry and the society. Fangyuan actively uses its technique and does some work in the construction of demonstration region and financing innovation.
Fangyuan carries out technical promotion and service for Shandong Hengbang, Baotou Huading, Zhongtiaoshan and other enterprises; contributes to close down outdated production facilities and develop efficient circular economy; goes abroad to promote ‘Fangyuan Technique’ relying on the years of advantages in smelting technology. In April 2016, National Development and Innovation Committee and Chile Mining Ministry signed China and Chile Mining Cooperation Memorandum of Understanding, which marking that China wins the leading right in the cooperation with Chile. Currently, Fangyuan has already carried out technical services strategic layout with the nations along ‘The Belt and Road’ like Thailand, Vietnam, Mongolia, Russia, Indonesia, Kazakhstan and some Latin American countries like Chile, Peru and Mexico. Especially, the signing of the Memorandum of Understanding marks that China wins the leading right in the cooperation with Chile, and the technical cooperation between Fangyuan and Chile has a good beginning and breakthrough. The output of ‘Fangyuan Technology’ makes Fangyuan become widely known and have a good reputation both at home and abroad.
Financing innovation integrates the industry resources and enhances the influence in the overseas market. Based on the approval of foreign debt limit, Fangyuan builds a management platform of cross-border capital pool jointly with big four banks used for the circulating fund home and abroad and trade settlement of cross-border RMB. Fangyuan becomes the test unit of Bank of China for the first parcel of standard coin cross-border capital pool, which effectively preventing financial risks. According to the operational characteristics, Fangyuan successfully completes the structural syndicated credit for about thirty hundred and eighty five million US dollars with the help of Deutsche Bank, ING Bank and other eleven offshore banks. Relying on Fangyuan International Logistics Center, Fangyuan realizes the financing mode like storage, agency, buy-back, pledge with the connected effect of Logistics Center and Dongying Guangli Port. All of these measures help Fangyuan lower the cost and the financial risks.
In terms of boosting regional economic development, Fangyuan takes the responsibility in the development of copper enterprises and makes cooper and deep processing of copper products become the third biggest pillar industry after petrochemical engineering and rubber tire. The total value of output is more than a hundred billion yuan. In 2015, Dongying received approval of the only one ‘Brand establishment demonstration zone of national copper and copper products’. The value of the brand is about nineteen point seven billion yuan. Fangyuan gives full support on the development of nonferrous industry, actively organizes annual meetings and forums; and cooperates with same industry to enhance the influence and promote the development of the industry.
In terms of energy conservation and emission reduction, Fangyuan breaks the record time and again and becomes the model in the industry. In the research result of McKinsey Company for nearly sixty famous enterprises, the production cost and energy consumption of a ton copper are the lowest and reach the leading level of the world. Relying on the chain of standardization of recycling economy, Fangyuan realizes the total resourceful utilization of waste water and slag. As the national control unit of Environmental Protection Ministry, the emission of sulfur dioxide is only a quarter of the first grade index of the standard of Cleaner production. The emission of COD in unit product is only half of national standard. The factory is like a park with many trees and flowers there, which overturns our view about smelting industry.
In the terms of public support, Fangyuan has already donated more than thirty million yuan in cultural construction, science education, industry development and community building in recent three years. Fangyuan also sets up professor fund in University of Queensland; sets up practice base for graduates with Central South University, University of Science and Technology Beijing; builds Fangyuan Hope Primary School, culture courtyard and kindergarten in Dongying to help the poor. Fangyuan has won the title of ‘The kindest charitable donation enterprise’ many times.
The fourth method to create brand and shape the spirit of coppersmith
Brand culture and craftsmanship bring good quality.
Referring to ‘Lufang’ copper cathodes, the first response of the market is its good quality with the copper content more than 99.99PCT and far beyond national standard. Referring to Fangyuan technology, the response of the industry is the high-end economical and practical equipment with energy conservation and environment protection. Referring to Fangyuan pattern, the response is the mature circular economy pattern and the model of standard path. In the endless innovation, Fangyuan builds a brand system focusing on Lufang product, Fangyuan technology and Fangyuan pattern.
In the promotion process of quality brand, Fangyuan also meets some problems like that the national standard was unable to keep pace with the development of enterprise and the contradiction between the product quality and product standard. At the time of solving these problems, Fangyuan’s understanding for quality brand keeps improving, which is that product quality is the foundation for an enterprise’s development and craftsmanship and technical innovation are the key points to promote quality brand.
Cui Zhixiang, the Chairman of Fangyuan, thinks that copper smelting is shaping a person. In order to make the best copper product in the world and build a world leading copper enterprise we should rely on people. In many years’ operation and development, the senior management draws the quintessence of Chinese traditional culture, builds distinct enterprise culture system based on the truth, the thought and the spirit about copper and brings the culture to the employees and other partners through internal magazines, newspapers and other learning activities. Under the vision of building world leading copper enterprise, Fangyuan makes a development strategy focusing on smelting, extension, global distribution and scale operation. According to the vision and the clear positioning for copper business, Fangyuan forms a coppersmith culture which is influencing the people around. The whole enterprise puts copper first and forms a culture of smelting copper, talking copper, appreciating copper and loving copper.