Chapter 292 Recent Situation



After Zheng Li finished teaching Li Miaomiao magic, there was a period of casual conversation.

Li Miaomiao would usually share some news with Zheng Li and have a chat with him.

Zheng Li appears naive in many things, but she is also exceptionally perceptive in certain areas.

"Baosteel's smart factory's first-quarter production data has been released, showing a significant increase in factory accident rate, per capita steel production, and total steel production."

This data led Baosteel to decide to transform the entire Baoshan base into a smart factory over the next three years.

We are currently in discussions with Huawei regarding specific cooperation details.

With the will of the higher authorities in place, and Baosteel's ambition to become a benchmark enterprise for China's Smart Manufacturing 2035 initiative, things progressed very quickly.

For Baosteel and even Shenhai, this is a commendable achievement.

Zheng Li asked, "If the entire Baoshan base is to be renovated, shouldn't there be a higher level of requirements for information security?"

Previously, it was just a factory undergoing smart factory transformation, and the information security requirements were sufficient at Level 3 of the Information Security Protection Standard.

However, if the entire Baoshan base is fully automated, with artificial intelligence taking over most of the steel production and only a small portion being done through industrial VR, then a higher level of information security measures are needed.

Otherwise, if a production accident is caused by a hacker intrusion, no one can bear the responsibility, especially if the hacker is from overseas.

Even with efforts to hold individuals accountable, no one can be traced back to them.

As for which party the overseas hackers belong to, it may be impossible to find out.

Li Miaomiao: "Yes, I communicated with the senior executives of Huawei before, and their idea was to physically isolate the entire Baoshan base from the network."

Then, a complete local area network (LAN) is built internally.

This not only solves information security risks, but also eliminates interference from external networks and further reduces network latency.

Just acquiring the Baoshan base alone, which will take three years, and the entire project is estimated to cost around 5 billion yuan in total.

More importantly, this is the best brand and case study for Huawai. We've even done Baosteel, so doing yours is a piece of cake, right?

China's national strategic plan at the beginning of 2022 already stated that the whole country should concentrate its efforts, and that only a few super-large enterprises in industries like steel need to be properly managed.

The general idea is that the steel industry needs consolidation, and that's exactly what China is doing.

From the merger of Baosteel and Wuhan Iron and Steel in 2016, to the transfer of equity of local steel companies such as Maanshan Iron and Steel, Taiyuan Iron and Steel, and Shandong Iron and Steel to Sinosteel free of charge, etc.

Ansteel and Benxi Steel Group merged and reorganized, while Fangda Group reorganized Dazhou Steel, Pinggang Steel and Fangda Special Steel, etc.

A series of events indicate that consolidation in the steel industry is accelerating.

The will of the state is fully reflected in this heavy industry sector.

If Baosteel can set an example in the intelligent steel industry, other large steel groups will follow suit.

The transformation of China's overall steel industry alone is enough to make Hua Wei a fortune.

More importantly, the Huawei Smart Industry team can use this as a starting point to enter more manufacturing industries.

You can start with steel and move into coal chemical industry, then coal chemical industry, then chemical industry, then petroleum, and so on.

The above is just an idealized development; things are never that smooth sailing.

The intelligent transformation of the steel industry is only the first step in the intelligent transformation of China's manufacturing industry. The pie for upgrading China's manufacturing industry is too big. Huawei has already seized the initiative, and giants such as Alibaba, Tencent, Pinduoduo, Baidu, and Xiaomi are all eyeing it covetously.

In fact, Baosteel has always been committed to intelligent steel production. As early as five years ago, Baosteel's number of employees decreased from 19 people in 2019 to 21 people in 2021.

The number of people laid off is approximately seven thousand.

The reduction in Baosteel's workforce was accompanied by a significant increase in revenue and profit, with revenue rising from 292.4 billion yuan to 365.3 billion yuan and profit increasing from 13.87 billion yuan to 26.455 billion yuan.

Baosteel was able to reduce so many employees in 2021 because they were promoting the use of robots to replace manual labor. The robots they were promoting at that time were called Baoluo robots.

The collaboration between Baosteel and Huawei has been very successful, leading Baosteel's leadership to decide to gradually promote the integration of artificial intelligence, robotics, and industrial VR over the next five years to replace manual labor.

They want to reduce the number of employees from [number] to less than [number].

What does it mean to reduce costs and increase efficiency? Technological progress is the most effective means of reducing costs and increasing efficiency.

"The smart transformation of the domestic steel industry alone is a field with immense potential, and it's not just about potential; it has already generated some profits."

Other internet giants certainly won't just watch Huawei take a slice of this pie.

According to information I received from an executive at Ali, their cooperation project with Panzhihua Iron and Steel Group will also begin production in the first half of this year.

Instead of competing with them in the steel industry, DaMi has chosen to focus on the intelligent manufacturing of DaMi cars.

When I went to Yanjing for a meeting before, my senior brother Lei treated me to a meal and gave me a brief introduction.

They hope to use AI-powered VR technology to reduce the production cost of their rice-themed cars to a level comparable to Tesla's.

Zheng Li: "When I went from the R&D center to the headquarters office building for a meeting, I rode in a rice-themed car."

In terms of ride comfort, the Mi Car is quite good.

Have they made a profit yet?

Li Miaomiao replied, "Not yet. We are still quite far from being profitable. If I remember correctly, Dami Auto lost a total of about 2 billion RMB last year."

My dear reader, there's more to this chapter! Please click the next page to continue reading—even more exciting content awaits!

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