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Sales and production of Jiangsu Laiyang Special Steel Co., Ltd. in the first quarter
Against the backdrop of a complex global economy and fierce steel industry competition, Jiangsu Laiyang Special Steel Co., Ltd. delivered outstanding Q1 2025 sales and production results, showcasing its strength and boosting industry growth.
May 14th,2025
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I. Remarkable production results
This quarter, the company's total production of stainless steel and carbon steel products has increased significantly. Stainless steel production reached 5,000 tons, an increase of 15% over the same period last year, and carbon steel production reached 12,000 tons, an increase of 20% year-on-year. This significant growth is due to the company's multi-dimensional optimization of the production process. On the one hand, the company has increased its investment in production equipment and introduced advanced automated steel rolling equipment, which has increased production efficiency by 25%. For example, the new equipment can accurately control the rolling thickness and speed during the carbon steel rolling process, increasing the output per unit time from the original 8 tons to 10 tons. On the other hand, the company has comprehensively sorted out and reengineered the production process. By introducing the concept of lean production, it has eliminated many wastes in the production process and shortened the production cycle by an average of 7 days. Taking the production of stainless steel bars as an example, the originally complex multi-step grinding process has been optimized and integrated, which not only improves the surface quality of the product, but also reduces the production time by nearly 30%.
II. Outstanding sales performance
Breakthrough in total sales: The demand for the company's products in the domestic and foreign markets continues to rise. In the first quarter, the sales volume of stainless steel products reached 4,800 tons, and the sales volume of carbon steel products was 11,500 tons. In the domestic market, benefiting from the vigorous promotion of infrastructure construction and the steady recovery of the manufacturing industry, the demand for carbon steel products is extremely strong. With high-quality products and perfect after-sales service, the company has successfully won bids for many large-scale infrastructure projects, such as a large bridge construction project in the Yangtze River Delta and an important industrial park construction project in the Pearl River Delta, which has provided strong support for the growth of domestic market sales. In the international market, the company actively expands overseas business channels. By participating in international steel industry exhibitions and establishing long-term cooperative relationships with large overseas distributors, the market share of stainless steel products in Southeast Asia, Europe and other regions continues to expand. In Southeast Asia, we have reached cooperation with many large local construction companies to provide them with long-term and stable supply of stainless steel materials; in Europe, our products have successfully entered the high-end manufacturing supply chain in countries such as Germany and France.
Sales have increased significantly: In the first quarter, the company's total sales reached 800 million yuan, a year-on-year increase of 22%. Among them, the sales of stainless steel products were 350 million yuan and the sales of carbon steel products were 450 million yuan. The increase in sales is not only due to the increase in sales volume, but also due to the company's optimization and adjustment of product structure. The company has increased its research and development and production efforts on high value-added products, such as super stainless steel materials and high-strength carbon steel special profiles. Although the output of these products accounts for a relatively small proportion, their contribution to sales cannot be underestimated due to their high unit price and profit margin. Take super stainless steel materials as an example. Its price per ton is 50% higher than that of ordinary stainless steel. Although its sales volume this quarter only accounts for 10% of the total sales of stainless steel, its sales account for 25% of the total sales of stainless steel products.
Ⅲ. Fruitful market expansion results
Deepening the domestic market: The company has further strengthened its regional layout in the domestic market. In East China, the company has established in-depth strategic cooperation with many large machinery manufacturing companies, providing them with customized carbon steel and stainless steel materials, and ensuring a stable market share. For example, it cooperated with a well-known machinery manufacturing company in Shanghai to tailor high-performance carbon steel parts for it to meet its strict needs in the field of high-end equipment manufacturing. In South China, in response to the high requirements of the architectural decoration industry for the appearance and quality of stainless steel products, the company has specially developed a series of stainless steel products with advanced surface treatment processes, and successfully entered many high-end construction projects, such as a super high-rise landmark building in Shenzhen.
International market expansion: In terms of the international market, the company actively responded to the "Belt and Road" initiative and increased market promotion efforts in countries and regions along the route. In Indonesia, the company invested in the construction of a steel processing center, which not only shortened the product delivery cycle, but also better met the personalized needs of local customers, making the company's products in Indonesia The market share increased by 8 percentage points this quarter. In the European market, the company has successfully obtained supplier qualifications from many well-known European companies by strictly following European standards in product production. For example, it has reached a cooperation with a German automobile manufacturing giant to supply it with stainless steel materials for auto parts, laying a solid foundation for further expanding its market share in Europe.
IV. Product R&D Innovation
New Product Launch: The company attaches great importance to product R&D innovation and successfully launched two new products with market competitiveness in the first quarter. One is a new type of high-strength corrosion-resistant stainless steel. While maintaining good corrosion resistance, the yield strength of this product has been increased by 30%, which is suitable for high-corrosion environments such as marine engineering and chemical industry. The other is a lightweight carbon steel composite material, whose density is 20% lower than that of traditional carbon steel, but the strength can still meet most conventional application scenarios, and has broad application prospects in the fields of automobile manufacturing, aerospace, etc. At present, the new type of high-strength corrosion-resistant stainless steel has received multiple orders from the field of marine engineering, and the lightweight carbon steel composite material has also reached cooperation intentions with many auto parts manufacturers.
R&D investment and cooperation: In order to ensure the continuous innovation of products, the company's R&D investment in the first quarter reached 40 million yuan, accounting for 5% of total sales. The company has also established industry-university-research cooperation with many well-known domestic universities and scientific research institutions, such as cooperating with Tsinghua University to carry out research on the microstructure optimization of stainless steel materials, and jointly developing a new heat treatment process for carbon steel materials with the China Iron and Steel Research Institute. Through these collaborations, the company can keep abreast of the latest technological trends in the industry and continuously improve its R&D capabilities. In the cooperation project with Tsinghua University, phased results have been achieved, which is expected to further improve the performance and quality of the company's stainless steel products.
V. Quality Control Upgrade
Improvement of quality system: The company always regards product quality as the lifeline of the enterprise, and comprehensively upgraded the quality control system in the first quarter. Advanced quality management software has been introduced to realize the information management of the whole process from raw material procurement, production process control to finished product inspection. Through this software, various quality parameters in the production process can be monitored in real time. Once an abnormal situation occurs, the system will immediately issue an alarm and automatically trace the source of the problem, greatly improving the efficiency of handling quality problems. For example, in a production process, the software promptly detected abnormal fluctuations in the carbon content of a batch of carbon steel products. Through system tracing, the problem of the raw material supplier was quickly located, the raw materials were replaced in time, and the production process was adjusted, avoiding the production of a large number of unqualified products.
Customer feedback and improvement: The company attaches great importance to customer feedback and has established a perfect customer feedback mechanism. In the first quarter, a total of 200 customer feedback opinions were collected. In response to these opinions, the company organized a professional team to conduct in-depth analysis and rectification. For example, when a customer reported that some stainless steel products had minor scratches on their surfaces, the company immediately optimized the transportation and packaging of the production equipment and added a buffer protection device, effectively solving the problem and significantly improving customer satisfaction. Based on customer feedback, we redesigned the product packaging and used stronger and more environmentally friendly packaging materials, which not only reduced the damage rate of the product during transportation, but also improved the product image.
VI. Challenges and Responses
Raw material price fluctuations: In the first quarter, the price of raw materials in the steel industry fluctuated sharply, posing a huge challenge to the company's production cost control. The prices of major raw materials such as iron ore and nickel rose sharply in some periods, resulting in a 20% year-on-year increase in the company's raw material procurement costs. In order to meet this challenge, the company has strengthened its strategic cooperation with suppliers on the one hand, and strived for more favorable procurement prices and payment terms by signing long-term and stable procurement contracts. A three-year long-term contract was signed with a large domestic iron ore supplier to ensure a stable supply of iron ore and a relatively reasonable price. On the other hand, the company actively carried out research on raw material substitution, exploring the use of some relatively stable prices and similar performance alternative materials to reduce dependence on traditional high-priced raw materials. At present, a new alloy material has been successfully tried in some products to replace part of the nickel element, effectively reducing production costs.
Intensified market competition: With the development of the steel industry, market competition has become increasingly fierce. Many domestic and foreign steel companies have stepped up their market expansion efforts and launched similar products, posing a certain threat to the company's market share. In order to stand out from the competition, the company has further strengthened its brand building, and has enhanced its brand awareness and reputation by participating in industry exhibitions and holding product promotion meetings. At the International Steel Exhibition, the company's latest research and development results attracted the attention of many domestic and foreign customers. At the same time, the company continues to optimize product services, providing customers with one-stop services from product selection, technical consultation to after-sales maintenance, and enhancing customer stickiness. An exclusive service team has been established for key customers to provide 24-hour online consultation and technical support to promptly solve problems encountered by customers in the process of using products.
VII. Future Outlook
Looking to the future, Jiangsu Laiyang Special Steel Co., Ltd. will continue to uphold the development concept of "quality first, innovation-driven, market-oriented, and win-win cooperation". In terms of production, continue to increase investment in technological transformation and equipment upgrades to further improve production efficiency and product quality. It is planned to carry out intelligent transformation of some old production lines in the second quarter, and it is expected that production efficiency will increase by another 15%. In terms of sales, continue to deepen domestic and foreign markets, continuously expand sales channels, and increase the development of emerging markets and high value-added product markets. In terms of product research and development, more resources will be invested in cutting-edge technology research, and at least one new product with industry-leading level will be launched in the second half of the year. The company is confident that it will achieve even better results in 2025 and make greater contributions to the development of the steel industry.
