Move from Taiwan to mainland---Hsin Cement Company and its CEO Mr.Zhangganglun


Updated Fri, 25 Jun 2004 00:00:00 GMT

Recently, for the conceding economic in Taiwan, cement market reduce little by little, while in mainland, economic develops fast and stably. There are many basis architecture in building, as attract lots of Taiwan cement merchants into Mainland. 
 Hsin cement group with fifty years’ history is one of the top three cement groups in Taiwan. Hsin invested in Mainland earliest, in 1995, Hsin invested US $ 0.28 billion in Jiangshu to form Hsin Jingyang Cement Company, and it was put into production in 1998.
Presently, Hsin has already stopped producing in Taiwan and all moved to Mainland, in Mainland, there are eight cement factories and relative factories, two in Jiangshu,are Hsin Jinyang cement enterprise and Jiangshu Lianhe cement enterprise; six in Shanghai,are Shanghai Hsin cement enterprise, Shanghai Jiahuan concrete enterprise, Shanghai Jianxin Ganghui enterprise (storage and distribute), Shanghai new shipping company (cement shipping and distribute) and Shanghai yitong company( brick and  veneer).After several years’ developing, Hsin has been one of the first ten cement suppliers and was put into market successfully in Nov 2003 in Hong Kong.
Face great achievement, as the third successor----Mr. Zhangganglun, how will he do with the asset? Recently, Shaojun, CEO of China century net company, with Wanghongbin, COO of China century net company, visit the young entrepreneur, Mr. Zhangganglun.
Asker: Wanghongbin, COO of China century net company( wang )
Answer: Mr.zhangganglun (zhang)
Wang: it is reported that the achievement of Hisn Jingyang in first season is very good, could you tell us how Hisn can go up so quickly? Could you talk about the plant distribution and selling situation of Hisn?
Zhang: while cement price trends to go down in east China, Hisn cement goes up a little. That for Hisn has a group of long-term customers. Last year, the cement price went up greatly, Hisn did not increase the price immediately, let customers have enough time to do some preparing. At the same time, Hisn also gave some advice to the customers. Also, in general, the projects our customers do are all important projects such as road, bridge building. Of course, they have enough capital, and would not pay in arrears. Market distribution and selling have something to do with the profit increasing.  The position of Jingyang is very good, can know the market changing in time, and we can adjust immediately. Like in the early of this year, the demand along the sea reduced, price decreased, except keep the basic demand, we do more selling along the river. But now, the condition is on the contrary; also we do adjust in time. in 2001, we improve our plants, now the capacity increases 35%, the production rise to 2.9 million tons. Now, we are ready to enlarge grinding mill, increase cement production. The project can be competed in Oct this year, then the production in 2004 can come to 3.1 million ton. In addition, the plant –Jingyang No.2 is under building, it is expected to finish in the forth season. Nanjing design institute designs the plant with 1.5 million ton capacity.
Wang: Hisn cement group was put into market in Nov 2003 in Hong Kong, but the business are mainly in Mainland, why you put Hisn into market in Hong Kong? Could you talk about the course and some experience?
Zhang: in fact, Hisn is a listed company in Taiwan all the time, so we are familiar with situation. At the beginning, we want to put Hisn into market in mainland, but there are no definite definitions on foreign investment into market, also we inquire leaders, they advice us to put Hisn into mainland market after all the things have definite definitions. Then we choose Hong Kong, it is belong to China, also it is an international city, has lovely market. So it is also a good opportunity that listed in Hong Kong.
There are many files needed auditing for listing; of course we already did some preparing for the files.  Currently, power shortage in Zhejiang province is urgent. The power of Hisn is in nation’s budget; also we would enquire leaders in power department at the beginning of each month, this ensure that there are enough power to supply for producing. Of course, for the power shortage, we should do something going with nation to go through the crisis.
Wang: there are so many cement policies, which impact cement industry greatly; do you think this a good news or bad news? How do you think industry policy?
Zhang: it is formal that nation macro control economic, this can step up industry adjusting, so that market could develop well. Company to last macro controlling, this one is earlier and systematical. Cement is one of the industries that would be controlled. To the blind investment and repeated or ineligible projects, the bank would postpone or stop the loan, and the action would result in some projects delaying. Hisn has foreign investment, so it is impacted very little. In addition, with economic developing, many basic building should be built, the demand for high grade cement are increasing day by day, Hisn will do as the market trending to strengthen our ability to do cement business well.
Wang: Asia Cement Group, Taiwan Cement Group and Global Cement Group enlarge themselves faster than Hisn, although they came into Mainland later, how do you think about those actions?
Zhang: Asia Cement Group enlarges fastest I think. Maybe they came into mainland too late, so they want to step up, these groups all have enough capital, of course they enlarge more quickly. Many people rank cement enterprises at scale, but I think profit is more important. An enterprise should enlarge itself little by little; what is more, it should go with market. If market is not suitable for enlarging, then I think we should not enlarge urgently. In a word, I think cement industry is an industry that goes ahead steadily and surely.
Wang: with cement industry developing, demand for people with ability increases quickly, how about the situation in Hisn? What do you emphasize in employing?
Zhang: like other enterprises, we also pay attention to studying course, degree etc. about degree, it is not necessary for master or bachelor, enough is ok. I think activity, reliability and ability are important. We plan to form a producing base with 10 million ton capacity, now we employ people for this project. Usually, we ask freshmen to study how to work. Then we well assign them to each department in different region and different company.
Wang: how do you deal with the relation between native employee and Taiwan employee, especially for administrative people? Take the liberty to ask once, whether will result in the employee leaving?
Zhang: at beginning, there are many Taiwan employees, later, only a few, about twenties, they are mainly in administrative department; in factory, there are no more five. People should believe in each other, however they need some time know each other. Of course, there are some conflicts, but people could forgive.
About salary, different stage has different salary; there are strict rules, every one is equal before the rules. Hsin is a harmony family.
Wang: can you talk about the culture and principle of Hisn?
Zhang: Hisn is a family, its door are opened for people. We care for the live situation of employees. Maybe not everyone is satisfied with us, but we are trying our best. We often communicate with our staff, let them know what we want, and then they will give some advice.
Also we do all the same things to our customers, know what the customers want, try our best to help them, look them as our friends not only customers. For example, if a customer his or her child is studying in England, while some friends of mine are also there, I would ask my friends to care for his or her child. We will do kindly to our employees and customers all the time.
Wang: what is your wealth conception?
Zhang: my family was very rich when I was a child, but my parents are very strict with me. I went to school by bus; my pocket money only could buy a handy meal. I remembered, when I was sixteen, in that summer holiday, my parents asked me to go to a summer class only using my 100 US dollar. They asked me to go to US myself first and chose class, and then they will send me money. But when I was in US, they told me that you could eat and live in school, we thought you could depend on yourself at all. Then I have to make lives myself while studying. So I know how difficult earn money and know how to make use of it. I can help others while I am in good lives.