2011-01-26
January, 19, standing committee member of the CPPCC, board chairman of Tongwei Group Liu Hanyuan accepted exclusive interviews by cd.qq.com and Southwest urban newspaper on new energy prospect, Tongwei’s development model, the relation of CPI index and social economy, as well as periodic pattern of inflation.
About Tongwei’s development, Mr. Liu said, focusing its core business on agriculture and new energy, Tongwei Group is a leading technologically advanced private enterprise. It continues its development blitz with chemical industry, pet food, IT, construction and real estate. The Group operates nationwide as well as in Southeast Asia with its 100-odd branch/subsidiary companies and approximately 15,000 employees. Among these, Tongwei Co., Ltd is a listed company that manages an annual feed production capacity of over 6 million tons. The company has captured 25% of China’s market share for aquafeed, which makes it the nation’s industry leader for 16 consecutive years. It has become the world’s largest aquafeed manufacturer as well as major livestock and poultry feed producer. With its healthy and fast development, Tongwei Group has built a formidable business that tallied ￥26.2 billion RMB in sales in 2009. To fulfill its grand vision of “Enhancing Life Quality of Mankind by Creating a World-class Brand of Aquatic Products”, Tongwei perseveres in feed and aquaculture core business development, as well as its industrial chain build-up on its way to the world-class safe food supplier.
Mr. Liu continued, Tongwei’s investment in the West has reached almost RMB ￥8 billion yuan with over 50 subsidiaries, among which the Ronglai model has formed. Ronglai mode has formed an industry cluster that involves farming, feed, pharmaceuticals, investment guarantee, slaughter and processing. The total investment of Ronglai mode has reached ￥ RMB 500 million yuan, with the participation of 8 leading companies. In 3 to 5 years, the total annual sales revenue will exceed 3 billion yuan. Meanwhile, Tongwei strives to strengthen its competitiveness through huge investment in polycrystalline silicon and solar PV industry. It aims to become the world’s largest polycrystalline silicon manufacturer and the world’s largest clean energy enterprise. With this, Tongwei Group’s sales revenue will reach ￥50 to 80 billion RMB in 3 to 5 years.
On the questions of “If Tongwei model can be duplicated today”, Mr. Liu answered, it depends on your perspective. The past 30 years was a time of shortage economy, which enabled us to be sufficient in time and resources to acquire some sort of producing capacity that could win markets and development potentials. Today, however, this can hardly be done. Yet, with a heart of careful observation, new opportunities can be discovered with even broader range. As ideas and material wealth were limited in the past, simple duplication may not be tenable. But new opportunities and standing points will follow with the same idea of seizing business opportunities.
On the proposals for this year’s Two Sessions, Mr. Liu said, it is a positive sign of economy that China’s fast GDP growth reaches over 10 %. Yet we need to make some regulation rules over excessive growth of GDP and higher CPI index.
Additionally, Mr. Liu brought forth a brand-new idea about CPI index. Other countries’ development progress and related data reveals, comparatively higher CPI index indicates better economy with more employment and more salary promotion, while CPI figure falling below 0 indicates difficult economy with great employment pressure.
Finally, Mr. Liu talked about the happiest thing happened in the past year: the initiation of Tongwe’s 3,000-ton polysilicon project in May, 2010. Also, this year the 6,000-ton polysilicon will be commissioned. The 3,000-ton polysilicon project is of smaller scale with less raw material consumption and lower cost. Its success on testing line is the first in the world of its kind in terms of producing method. This is the happiest and the most exciting thing for the core technical team and all the participants.