According to Shen, the group operating from its Shagang headquarters is set to grow in strength, expand its operational base, improve product quality, and extend its scale by acquisitions and mergers. Over the next three years, Shagang will seek acquisitions to increase its steel production capacity by over 10 million tons.
As a high energy-consuming industry, the iron and steel sector is a key target for state-level macro-control policies. Therefore, Shen attaches a high importance to the study of and compliance with state industrial policy. He is ready to invest more in recycling, energy conservation, and emission and drainage outflow reduction. "Businessmen must be fully aware of state policies and guidelines," said Shen. "They must bear in mind what will be supported by the state, and what is prohibited."
During the 2001-2005 period, Shen proposes to establish an "environmental-friendly steel city". Over the last 5 years, 3 billion yuan (US$0.4 billion) has been invested in conserving energy, reducing emissions and drainage runoff, rationalizing the use of resources, and creating a recycling economy within Shagang. What's more, not only has the environment benefited but these essentially conservational measures have also brought the company an increase in annual profits of over 1 billion yuan (US$0.13 billion).
"We must protect the environment whether it is profitable or not for the company. 3 million yuan (US$0.4 million) is invested every year in drainage disposal," Shen said. "This investment is a must. We are inviting trouble if we ignore environmental protection."
Elected as a delegate to the Party's national congress for the second time, Shen clearly feels the responsibilities that are resting on his shoulders. "Sound development of the company is my biggest contribution to China," he said. Two strategic issues are now occupying his attention. One is what area of operations should Shagang focus on? The other is succession planning for the leadership at Shagang, projecting ten years into the future.
"Both these issues require immediate attention. If the wrong decisions are taken now, missed opportunities will mean huge losses for the company, the nation, and for society."
