MCC High-Tech Engineering Co., Ltd (MCC High-Tech) was incepted in order to learn more of the international advanced sheet billet continuous casting and rolling technology, and to carry out technology import, innovation and localization. It received approval from the former Ministry of Metallurgical Industry, according to the requirements of related directives given by the central leadership and related official documents drafted by the former State Planning Commission and Economics and Trade Commission. MCC High-Tech specializes in production, education, research, and application.
MCC High-Tech’s 10 stockholders and investing institutions are operators in the metallurgical sector engaged in design, scientific research, production, and equipment manufacturing. They are: MCC, MECC, Guangzhou Pearl River I&S Co., Ltd, Baotou I&S Company, Handan I&S (Group) Co., Ltd, Shanghai Pudong I&S (Group) Co., Ltd, Wuhan I&S Engineering Institute, Baotou I&S Engineering Institute, Beijing I&S General Engineering Institute, and New Metallurgical High-Tech (Group) Co., Ltd. MCC holds 51% of its stock. MCC High-Tech was registered in the National Administration for Industry and Commerce with the registered capital of 22 million yuan. The corporate representative of MCC High-Tech is Yang Changheng and the general manager is Yang Zixing.
The development strategy adopted by MCC High-Tech is for it to be a high-tech industrial entity that can achieve high economic benefit and generate high technology. Under the macroscopic direction of concerned government departments, MCC High-Tech will better learn international advanced sheet billet continuous casting and rolling technology, and carry out technical import, innovation and adaptation to promote technical development of China’s I&S industry.
MCC High-Tech’s scope of business includes: carrying out, directly or as an import/export agent, import/export of sheet billet continuous casting and rolling technology, and electromechanical products required for application in engineering excluding those goods under the national monopoly and prohibited to be imported/exported; processing materials supplied by clients and engaging in compensation trade; conducting technical import and transfer; performing scientific and technical development and application; carrying out equipment manufacturing and sales; engineering consulting and personnel training.
To fast track the import of the advanced sheet billet continuous casting and rolling technology into China, MCC High-Tech went into two joint ventures with SMS Co., Ltd and Siemens (China) Co., Ltd, Germany, respectively, with the approval from the Ministry of Foreign Trade and Economic Cooperation. These ventures were registered in the National Administration for Industry and Commerce. Two joint ventures are: SMS-MCC High Technology Engineering Co. Ltd (SME), with the registered capital of 2 million DEM and a 50%-50% shareholding ratio; and Siemens-MCC High Technology Engineering Co. Ltd (SMC), with the registered capital of 1.6 million DEM and a 50%-50% shareholding ratio. Eventually, SMC was liquidated and dissolved at the end of 2001 when both parties’ agreement expired; on the other hand, SME was transferred to SMS to be included in its business category under both parties’ agreement.
There are three departments in MCC High-Tech, i.e., Business Department, Financial Department and Administration Office. The employees, mainly from MCC, are very efficient and the offices are not overstaffed. The organization chart is attached below.
MCC High-Tech’s internal management system basically conforms with that of MCC. MCC’s rules, regulations and resolutions also govern MCC High-Tech. MCC High-Tech is a corporation founded according to the requirements of the “Corporation Law”, and its important resolutions are established and carried out adhering to the provisions of its constitution.
Since its foundation, MCC High-Tech has made yearly profits and without having to secure bank loans. Value added rate of the state-owned assets of up to 6% each year is achieved, and the Company is in good financial condition.
MCC High-Tech had completed three projects of sheet billet continuous casting and rolling in Pearl River I&S Works, Handan I&S Works, and Baotou I&S Works. It is also carrying out general engineering contraction in Tangshan Guofeng I&S Works continuous casting and rolling project. Moreover, MCC High-Tech plays an important role in MCC’s sheet billet continuous casting and rolling technical center and in key technical equipment development and localization. To meet the requirements of MCC for MCC High-Tech’s reform and development, the latter is determined to broaden its trade scope, improve its core competitive ability, and carry out technical consulting and promotion with technological innovation as its main focus, thereby making a complete transition to general engineering contraction.
Appendix: Organization Chart of MCC High-Tech
Organization Chart of MCC High-Tech