**Interview with Tan Chengxu, Chairman of Ansteel Group: Leading the Charge in High-Precision Innovation and Digital Transformation**

**Q: Ansteel Group has a long-standing legacy in China’s steel industry. Can you share how the company has evolved over the past 75 years?**

A: Absolutely! Since the inception of the People’s Republic of China, Ansteel has been at the forefront of the national steel industry. We were the first to produce seamless steel pipes and heavy rails in China, and we’ve established ourselves as a key supplier across various sectors, including shipbuilding, automotive, and nuclear power. Today, we proudly rank second in crude steel production in China and third globally, having made it onto the Fortune Global 500 list eleven times.

**Q: It appears that the emphasis was on increasing production for many years. How has that focus changed recently?**

A: Indeed, our historical focus was on ramping up production, particularly during what we call the “shortage economy.” For context, our steel output grew from 9.97 million tons in 1949 to 55.89 million tons in 2023. However, since 2015, we’ve shifted our focus toward quality over quantity. The steel industry has faced numerous challenges such as overcapacity and declining demand, which have led us to implement supply-side structural reforms.

**Q: What concrete actions has Ansteel taken to improve the quality of its products?**

A: Our primary focus has been on technological innovation. We’ve invested heavily in research and development of new materials and technologies, enabling us to offer high-value-added products. A prime example is our creation of ultra-high-strength crack-resistant steel plates for container ships, which took two and a half years to develop and has set new industry standards. We’ve also significantly increased our R&D budget, committing over 3.8% of our annual revenue to this effort.

**Q: You mentioned that digitization is a crucial part of this transformation. Can you elaborate on Ansteel’s approach to this transition?**

A: Certainly! Transitioning from traditional methods to digital intelligence has revolutionized our operations. Our old blast furnace, built in 1917, has been replaced by digitally controlled smart furnaces that greatly improve efficiency and reduce manual oversight. In our integrated control center, engineers can monitor and adjust processes with advanced digital displays, resulting in a 32% boost in labor productivity.

**Q: There’s been quite a bit of discussion about the perseverance and dedication of Ansteel’s workforce. How do you see this reflected in your teams today?**

A: The spirit of determination and dedication remains strong within our current workforce. For instance, we encountered a significant technical challenge while supplying critical steel plates for the Fujian Ningde nuclear power project, which had previously been solely handled by foreign manufacturers. Our teams worked tirelessly and developed the necessary steel product in just a year and a half. Our employees are deeply committed to continuous improvement and innovation, ensuring we meet evolving domestic and international demands.

**Q: What does the future look like for Ansteel Group in terms of its mission and vision?**

A: Looking forward, our mission is clear: to “manufacture superior materials and create better lives.” We aim to steer the steel industry toward high-quality development through innovation and collaboration. Our goal is to bolster our global competitiveness and play a pivotal role in advancing technological progress and safety within the industry. We are eager to embark on this journey into a new era and make meaningful contributions to the global steel landscape.

**Q: Thank you for sharing your insights, Mr. Tan. Your vision for Ansteel Group is both inspiring and ambitious.**

A: Thank you for having me. It’s an exciting time for Ansteel, and I believe that together, we can reach new heights in the steel industry.