Research On Development Strategy Of Iron And Steel Industry In Economic And Technological Development Zone (Toutunhe District)

With the years of development, the iron and steel industry has become the pillar industry of national economy in Xinjiang, until the end of the period of "11th Five-year Plan", the number of the iron and steel smelting enterprises has reached more than 80, with more than about 500 middle and downstream related industry enterprises, which have 13.55 million tons of iron and steel 10.2 million tons, 10.1 million tons of production capacity of steel rolling. Baosteel Group Xinjiang Bayi Iron and Steel co., LTD.(hereinafter referred to as the "Bayi Steel"), which is located in Urumqi Economic and Technological Development Zone(Tou Tunhe District), can produce steel 7.2 million tons, accounting for more than seventy percent of whole Xinjiang steel production, making it not only the leading enterprise of Development Zone(Tou Tunhe District) but the pillar industry of Xinjiang. Nowadays, due to this outstanding performance, Bayi Steel plays a significant role in many aspects of social as well as economic development in Xinjiang, such as revenue and the employment.Adjacent to central Asia and abundant in natural resources, Development Zone(Tou Tunhe District) has huge potential in terms of development. Besides, it benefits from the advantages in the policy of the Central Work in Xinjiang Forum and the strengths of the West Open foreign trade. However, meanwhile, the iron and steel industry of the Development Zone(Tou Tunhe District) is faced with several severe issues involved in overall situation, for instance, the excess capacity, low return on investment, unreasonable product structure, the independent innovation ability and rising prices of raw materials. How we should seize the opportunity to promote the competitiveness of the steel industry is a demanding issue. To settle this issue, the author holds a view that on the one hand, we are supposed to have an insight into actual external and internal environment of the iron and steel industry and their own ability; on the other hand we are required to deeply analyze how to combine geographical advantages to expand the space of the iron and steel industry development and put forward practical the strategic direction and measures based on the disadvantages for iron and steel industry, consequently resulting in promoting the benign operation of the iron and steel industry development direction.Therefore, this article mainly have applied the theory of life cycle theory, the analysis tools and methods related with management and development strategy to thoroughly analyze bottleneck problems that the development of the iron and steel industry in the Development Zone(Tou Tunhe District) is faced with. Such as the uncompleted steel industry chain, low class of the product, lack of research and development capabilities. At the same time, combining with the "Twelfth Five-year" Development Plan for the policy of steel industry development and the present development situation of the enterprises settled in, the author has proposed the specific measures in terms of the iron and steel industry in the policy, financial capital support, utilization of the advantage resources transformation, industrial structure adjustment, and the completed industry chain development strategy.