By Mikkel Larsen, Video by Peng Li, iChongqing News

Chongqing- “So, this is just another story, saying how the Belt and Road Initiative influenced not only a company like us, CISDI but also a lot of families, a lot of people in different countries. … I feel very happy about that, not only because I got a job [contract], but also, I feel that we are helping people.” Said Mr. Louee Young, General Manager of Overseas Business Department at CISDI Group Co., Ltd. (hereinafter referred to as CISDI) Chongqing during an interview with iChongqing at their Headquarters in Yubei on May 27th.

Mr. Louee Young, General Manager of Overseas Business Department at CISDI Group Co., Ltd.

CISDI is one of the principal subsidiaries of the MCC group, the Metallurgical Cooperation of China, and since their founding in 1958, they have grown into a corporation with more than 20 subsidiaries and branches around the world. An influential brand in the world’s steel industry.

“[The BRI is] very important. When the initiative was first proposed by China in 2014 or 2015, we were the first guys to have the feeling of ‘wow, this means a lot to us.’”

The steel industry is rightfully referred to as the backbone of a country. The BRI, whether over land or on the sea, helps connect CISDI with markets in Southeast Asia, as well as Pakistan, India, further on to the Middle East before finally reaching Europe. These countries were already target markets for CISDI, but the BRI has helped improve relations and made it easier to source and create deals and contracts. People have been motivated, have seen the potential, and realized that now was the time to invest. CISDI is also backed financially by some of the largest banks in China allowing them to work on substantial industrial park projects such as their large industrial park in Malaysia, which is the most extensive cooperation between the Chinese and Malaysian governments. A plant that was build in only 12 months and started making profits only 14 months after beginning operations, which is quite extraordinary.

One story came to mind from Australia, a small town called Whyalla that used to produce ships during the second world war. Their steel plants have been operating at a loss for years, and the threat of the plant closing, leaving all its workers without jobs was imminent. It was an old traditional industrial town; however, it had been largely abandoned about thirty years back. However, with the help of a British Entrepreneur, and through dialogues with the local governments, a new steel plant will be built in Whyalla, starting later this year. A massive $15 billion investment and a secured future for the town.

“We have a clear vision, that in the next 10-15 years, it is crucial for a company like us to be a real global enterprise.” CISDI is operating mainly in China but has seven subsidiaries all over the world. However, the subsidiaries are more like an extended arm from the headquarters, dealing with marketing and after-sales services. All the main activities, such as engineering, supplies, and equipment manufacturing, is still done in China. CISDI is currently building up their own team of engineers in India, manufacturing facilities in Vietnam, and are working closely with a British company on marketing and finance. Effectively, CISDI is looking to find the best resources all over the world to combine with their technical expertise to provide the best possible service. Much of this is possible because of the BRI.

CISDI is operating mainly in China but has seven subsidiaries all over the world.

The founding of CISDI is an interesting story. Created by the Central Government, 800 engineers and their families were sent on a train from North East China to Chongqing to settle and to establish and build the first independent steel plant in Southwest China.  Since then, they have grown up alongside the new China, helping to develop Bao Steel in Shanghai, Wuhan Steel in Wuhan and many other large steel plants. Twenty-five years ago, they became a company, which meant they no longer received delegated projects from the central government and had to compete in the market on their own feet. Fifteen years ago, in 2003, they landed their first overseas contract in Brazil for creating a blast furnace. This project also became the first independent, exported integrative solution for CISDI.

Louee proudly told us of how CISDI helped establish Bao Steel, which is one of the top steel manufacturers in the world at this time. Mr. Deng Xiaoping visited Japan in the 1970s and saw the modern steel factory of Nippon Steel. After seeing the factory, they decided to build a new steel factory in China but had to import everything, even the nuts, and bolts from Japan to build the steel plant. They put their disputes aside and started building with the help and support of the Japanese steel factory, and new technology from Germany. Now, the plant is running itself and is one biggest steel manufacturers in the world.

However, the road has not always been easy for CISDI, and they have met their fair share of challenges over the years. On a trip to India back in 2011, Luoee told how CISDI was in dialogue with the Indian steel producer, Tata steel to promote his company. During the meeting, he was told by the Tata steel executives that they had bad experiences with Chinese products in the past and weren’t at all interested in working with CISDI. However, CISDI did not give up, and ensured them, that their products would be of the desired quality. It has taken a few years, but now CISDI is the preferred supplier for Tata Steel.

“[It] is our responsibility to not only get projects with Chinese funding, and reach a profit, but also to try to help the locals to build up their skills and their own competitiveness, to be part of this global economic trade.” This is an aim and a target for CISDI, and even countries like the UK and the US, which are not directly a part of the BRI, are very keen and interested because the BRI can provide benefits for them as well.