The "Jintian Model" empowers Titanium Industry's "China Speed"

How did the "dark horse" enterprise achieve the "first rolling" in China's titanium industry?

——Special Report of the 12th World Titanium Conference

　　 From June 19th to 24th, the 12th World Titanium Conference and Global Top Titanium Exhibition, the most comprehensive and largest-scale event in the global titanium industry, will be held in Beijing.
　　The World Titanium Conference is held every 4 years and is known as the "Olympics" of the titanium industry. After three applications, China finally won the hosting rights of the 12th Titanium Conference by a score of 5 to 2 against the United States. This is the first time the World Titanium Conference has been held in a developing country, marking China's entry into the ranks of internationally advanced titanium industries.
　　China is the fourth country in the world with a complete titanium industry system. Behind this honor and strength is a company that has achieved the "first rolling" of large-scale, heavy, and wide titanium strip coils in China, becoming a milestone event in China's transition from a major titanium resource country to a strong country in high-end titanium material processing and manufacturing; it has established China's only large-scale, heavy, and wide titanium strip coil manufacturing base with world-advanced level and achieved production this year; it has a goal: to form a complete titanium industry chain from titanium ore to sponge titanium, titanium ingots, and titanium processed materials, and to build the most influential and competitive titanium industry brand globally.
　　 It is the dark horse of the titanium industry—Hunan Xiangtou Jinting Technology Group (Xiangtou Jinting for short).
　　In May 2007, Hunan Xiangtou Jinting Technology Group took the lead in making a major breakthrough in key technologies, successfully trial-rolling China's first large-scale, heavy, and wide titanium strip coil; in August 2008, the cold-rolled titanium strip coil was successfully trial-rolled; in August 2009, the first titanium welded pipe in China was produced using self-produced cold-rolled titanium strip coils. In just over three years, it has achieved a three-level jump in the core technologies of deep processing of high-performance titanium materials in China. The complete line of titanium strip coil processes marks that China truly possesses the core technologies in the deep processing field of the titanium industry, breaking the foreign technological blockade. It has completed the journey that took Japan 20 years and Russia 40 years, creating a miracle in the rapid development of strategic emerging industries, once again demonstrating China's "China Speed" in the development of emerging industries.
　　What surprises the industry is why the "first rolling", which the titanium industry has dreamed of for decades, appeared in Xiangtou Jinting? What created the miracle? And what made Xiangtou Jinting a true dark horse in the titanium industry? As the curtain of the 12th World Titanium Conference opens in Beijing, reporters came to Xiangtou Jinting to explore the path of the "Jinting Model" in promoting the rapid development of the industry.
　　 Accepting the Mission to "Patch Up" and Successfully Transforming the Industry
　　Xiangtou Jinting's entry into the new materials field was somewhat accidental.
　　At the end of the last century, Luxi County, Xiangxi introduced the technological achievements of the Chinese Academy of Sciences to produce ultrafine spherical aluminum powder. Due to the lack of funds and talent, the progress of this poverty alleviation project was slow. Xiangtou Holdings Group, an investment platform of the Hunan Provincial Government, was entrusted with the task of "patching up".
　　This was somewhat like "forcing a duck to climb a tree" for Xiangtou Holdings, which mainly invested in local infrastructure construction. In terms of industrial investment, especially in high-tech industries, they lacked not only talent but also any precedents to draw lessons from.
　　Xiangtou Holdings specifically established Xiangtou Jinting Technology Company, and the aluminum powder project was the first high-tech project to be implemented.
　　The Xiangtou Jinting team spent two years replanning and integrating the aluminum powder project. During this period, the automotive industry experienced a "metal paint revolution", and the market exploded. Jinting Aluminum became the first enterprise in China to industrialize high-tech ultrafine spherical aluminum powder and the exclusive formulator of national industry standards, occupying a leading position in technology and market in the domestic industry, and cultivating a professional team in the field of metal new materials. It has established good industry-university-research platforms and talent and information sharing systems with universities and research institutions such as Beijing University of Science and Technology, Tsinghua University, the Chinese Academy of Sciences, and Beijing Nonferrous Metals General Research Institute, and has stood out in fierce competition.
　　An accidental investment opened the door to strategic transformation for this large investment company. In 2006, Xiangtou Holdings, having tasted the sweetness of high-tech industries, focused on strategic industrial fields when planning its "11th Five-Year Plan". The Xiangtou Jinting team conducted long-term research, under the guidance and direct participation of Academician Li Dongying, a leading figure in China's non-ferrous metal materials field, Academician Huang Boyun, president of Central South University, Professor Tang Renbo, a senior expert in titanium metal at the Northwest Institute of Nonferrous Metals Research, and many experts from Beijing University of Science and Technology, finally settling on high-performance titanium and its alloy new materials as the target industry.
　　 Titanium metal, known as the "space, ocean, all-purpose, and strategic metal", is a significant metal new material in the field of modern high-tech new materials. It has a series of excellent properties such as light weight, high strength, corrosion resistance, heat resistance, non-magnetism, and ultra-low temperature resistance, as well as four unique functions: shape memory, superconductivity, hydrogen storage, and biocompatibility. It has a wide range of applications in both military and civilian fields. The deep processing industry clusters and high-value-added products formed around titanium metal are important material support for the development of strategic emerging industries such as aerospace, new energy, energy conservation and environmental protection, and advanced equipment manufacturing. In these high-end industrial fields, the "titanium content" (i.e., the amount of titanium used) is an important indicator to judge the level of industrial development of a country.
　　China is a major titanium resource country, with reserves accounting for 40% of the world's total, but it can only produce some basic titanium processed materials. High-end titanium processed materials have been monopolized by a few Western developed countries, becoming one of the bottlenecks restricting the development of many emerging industries in China. Xiangtou Jinting's choice is both in line with the needs of major national strategic needs and because it saw the unlimited market space for the vertical extension and horizontal expansion of the titanium industry chain.
　　This strategic transformation completely changed the history of Xiangtou Jinting and made a stunning exclamation mark in the history of China's titanium industry development!
　　 Five Years of Hard Work to Form a "Vertical and Horizontal" Industrial Layout
　　Xiangtou Jinting adopts a business model that simultaneously implements construction, research and development, and market operations, optimizing and integrating resources throughout the national titanium industry, and using its advantage in mastering core technologies in the titanium industry to comprehensively promote the simultaneous development of the company's titanium industry.
　　In terms of industrial layout, Xiangtou Jinting has invested a total of 4 billion yuan, building three titanium material production bases in Changsha, Yiyang, and Changde in Hunan Province along the Changchang Expressway extension, forming a grand titanium industry corridor.
　　The Changde base, "Jinting Titanium", mainly produces titanium ingots and aviation titanium materials. The first titanium ingot produced on November 28, 2009, was tested by the China Nonferrous Metals Industry Quality Supervision and Inspection Center, and the product quality exceeded expectations. Currently, the company has undertaken major R&D projects for defense aviation materials.
　　The Yiyang base, "Jinting New Materials", mainly produces titanium welded pipes for nuclear power plants, and officially put into production in August 2010.
　　 The Changsha base, "Jintian Titanium," regarded by the industry as a symbol of China's rise to a world power in the titanium industry, is currently China's only large-tonnage wide titanium strip manufacturing base with world-leading technology. With an annual production capacity of 10,000 tons of titanium strip, it is currently undergoing equipment installation and commissioning, and is expected to begin production in August this year.
　　The Xiangtou Jintian high-performance titanium materials industry project has received significant attention and strong support from relevant national ministries and commissions, as well as the Hunan Provincial Committee and Provincial Government. Provincial Party Secretary Zhou Qiang and Governor Xu Shousheng have made multiple in-depth investigations and on-site visits to the base. The project is included in Hunan Province's major science and technology projects, key projects, and key strategic emerging industries. Upon completion and reaching full capacity by the end of this year, it will become one of the most important production bases in the global titanium industry.
　　In terms of industrial chain layout and development, the company has actively adopted a capital operation model, successively investing in companies such as AVIC Aero-Engine Corporation, Guodian Nanzi Company, Sanjiao Aviation Company, and Xinghu Technology Company, achieving a relatively complete titanium material application industrial chain. By holding a stake in Zunbao Titanium Industry Company, the company secures a stable supply of high-quality sponge titanium raw materials, achieving seamless docking of upstream and downstream industrial chains.
　　In the face of the growing domestic demand for seawater desalination, the company has accelerated the research and development of key technologies for seawater desalination titanium welded pipes and achieved significant breakthroughs, mastering the core technology of titanium welded pipe forming rolls with independent intellectual property rights. Currently, titanium welded pipe products have been sent to customers for sampling. In the next 10 years, the company will become one of the main suppliers of hundreds of billions of yuan worth of seawater desalination equipment in China. The company has also established strategic supply chain cooperation relationships with nuclear power equipment manufacturers such as Shanghai Electric and Dongfang Electric, laying a strategic foundation in the rapidly developing chess game of titanium material demand in nuclear power and offshore oil and gas engineering.
　　 Three Major Innovations Integrate Industrial Resources, Powering Titanium Industry's "China Speed"
　　The successful case of Xiangtou Jintian's strategic emerging industry reflects the wisdom of the company's decision-makers in integrating industrial resources. For the development of high-end technology industries, especially strategic emerging industries, core technological innovation and breakthroughs are crucial. How to accelerate technological innovation has become a major challenge to the survival and development of enterprises. In a dialogue and exchange with reporters from Science and Technology Daily, the company's senior management interpreted the company's three major innovative strategies in integrating industrial resources.
　　 Strategy 1: Innovative Mechanism—"Titanium-Steel Joint Strategy"
　　When the Xiangtou Jintian Changsha base was officially launched on October 18, 2010, the large titanium coil, known as "China's first rolling mill," was displayed at the entrance adorned with red ribbons. Before the factory was even built, where did the "first rolling mill" production come from? Xiangtou Jintian used the "Titanium-Steel Joint Strategy" to illustrate this story of "the egg coming before the chicken."
　　Generally, the development of high-tech industries goes through pilot testing, medium-scale testing, and then mass industrial production. Large industrial projects such as steel and metallurgy usually involve building factories and purchasing equipment first, and then developing technology and processes. Xiangtou Jintian did not want to use this traditional and relatively conservative approach to enter the strategic industry. Based on the characteristics of China's industrial mechanism, they innovated the technological research and development mechanism, namely, conducting core technology research and development first, integrating it into the steel mill rolling line, and then investing in factory construction after the entire technological route is completed, trial production products are offline, and some orders are received. This formed a unique "titanium-steel joint, integrated innovation" development model.
　　In just over three years, Xiangtou Jintian's technical team achieved a three-level jump in the core technology of deep processing of high-performance titanium materials in China, successfully trial-rolling the first large-tonnage wide hot-rolled and cold-rolled titanium strip coils, and successfully welding advanced titanium welded pipes used in power plant condensing equipment.
　　It took Xiangtou Jintian more than three years to achieve a titanium ingot production capacity of 5,000–10,000 tons per year; it took Kobe Steel and Nippon Steel decades to achieve 5,000–10,000 tons of titanium strip per year. Xiangtou Jintian achieved the same goal in just over three years.
　　The innovative mechanism originated from the deep understanding of the senior management of Xiangtou Jintian in developing strategic industries: the core technology research and development of titanium strip coils requires not only titanium industry experts but also steel experts, as well as the participation of titanium-steel joint experts. Simultaneously with the launch of the 10,000-ton titanium strip plate project, they signed agreements with the National Engineering Research Center for High-Efficiency Rolling of Beijing University of Science and Technology and Hunan Valin Lianyuan Iron & Steel Co., Ltd. to establish a titanium-steel joint high-efficiency rolling center, implementing cross-industry and cross-enterprise resource integration.
　　Currently, Xiangtou Jintian has achieved 6 breakthroughs in key technologies and filled domestic gaps in titanium deep processing, obtained 9 national invention patents, and built a complete proprietary intellectual property rights system. The national standard for "cold-rolled titanium strip coils" spearheaded by Xiangtou Jintian passed the final review of the State Standardization Commission on April 21 this year, and the national industry standard for "hot-rolled titanium strip coils" is about to pass the final review. Three more national standards and national industry standards are currently being drafted. Xiangtou Jintian has become a true industry leader in the field of titanium industry in China.
　　 Strategy 2: Gathering Talent Regardless of Convention
　　Human resources are the primary resource for scientific development. High-end talent in the global titanium industry is concentrated in the United States, Japan, and Russia. These countries control their limited number of titanium industry enterprises and talent as strategic resources, strictly controlling the core technology, information, and talent from developing countries such as China. China also faces the issue of information talent being relatively concentrated. Xiangtou Jintian, in developing the titanium industry, first faced the difficulty of gathering talent.
　　What to do? The company first made a breakthrough with "veterans," actively seeking support and participation from senior academicians, professors, and especially recently retired experts in the titanium and special steel industries. The addition of veteran titanium industry talents laid a solid foundation for the company's scientific research strength. In less than a year, the company completed the formation of its first core team of more than 50 high-level personnel consisting of "veterans, middle-aged, and young people." This team includes national-level experts such as Academician Li Dongying, a leader in the development of China's titanium industry, Dr. Nishimura, vice president of the Japan Titanium Association, Professor Tang Renbo, deputy chief engineer of the Northwest Nonferrous Metals Research Institute, and Professor Li Zhangheng, chief engineer of the Hunan Metallurgical Industry Department, as well as core technical and management personnel from Baoti, Baosteel, Valin, Zunyi Titanium Industry, China Ordnance Group, and China Aviation Industry Group, and masters and doctoral students from Beijing University of Science and Technology, Central South University, Wuhan University of Science and Technology, Beijing Iron and Steel Research Institute, and Northwest Nonferrous Metals Research Institute.
　　The joining of these talents has enabled Xiangtou Jintian to continuously achieve excellent results in technological breakthroughs in the titanium industry. After the successful trial rolling of the company's titanium strip coils, many talented individuals eager to make a contribution began to gradually learn about and join the Jintian team. Currently, Xiangtou Jintian has initially formed a core team of high-level talents in technology, marketing, and management.
　　Currently, the company has successfully established technical cooperation and information sharing platforms with the Chinese Academy of Sciences, Tsinghua University, Beijing University of Science and Technology, the Iron and Steel Research Institute, Central South University, Chalco, Sinosteel, CNMC, and Japan ITM and other renowned domestic universities, research institutions, and enterprises, tracking and mastering the latest technological developments in the relevant industries, and conducting cooperative development of related new products.
　　 Strategy 3: Whole-Industry Chain Thinking, Increased Risk Control Intensity
　　Xiangtou Jinting's entry into the titanium industry is not limited to individual projects but encompasses the entire industrial chain. In recent years, leveraging its parent company's investment platform, the company has strategically invested in upstream sponge titanium enterprises and downstream nuclear power and aviation power enterprises, forming a synergistic relationship to mitigate risks. Titanium welded pipes, as a supporting project for nuclear-grade pipe materials, facilitate comprehensive collaboration between the parties in design, technology, supply, and information. Xiangtou Jinting's forward-looking horizontal industrial layout has taken these factors into full consideration.
　　In the opening year of the 'Twelfth Five-Year Plan', the company has mapped out a strategic development goal for the global titanium industry: to become a world-class titanium industry production and processing platform, tailoring its product structure to meet international customer needs and achieving equal footing with major titanium industry giants in the international titanium materials market.
　　Xiangtou Jinting aims to innovate its talent and strategic cooperation mechanisms, focusing on efficiency, talent, innovation, and risk control. It is accelerating its strategic investment in the industrial chain to establish a globally competitive industrial platform. It is striving to acquire two or more large-scale industrial chain enterprises, achieve sales revenue of 10 billion yuan, and advance the process of asset efficiency, securitization, and internationalization.
　　It is accelerating collaboration with internationally renowned titanium processing companies and key industry clients to form strategic alliances, enhancing the company's international market competitiveness and fully adapting to the ever-changing international titanium materials market. Currently, Xiangtou Jinting has established cooperative relationships with several titanium processing companies in the United States, Japan, and South Korea, and has also established business dealings with several companies in the fields of seawater desalination and heat exchangers in South Korea and Japan, establishing the company's presence on the international titanium industry stage.
　　This year, Xiangtou Jinting has also begun to venture into the fields of medical, naval, chemical, metallurgical, power, transportation, environmental protection, construction, and sports industries involving titanium, accelerating the establishment of a globally competitive technology research and development platform. Through continuous technological innovation, it is striving to obtain five or more national or industry standard drafting rights and more than 50 national patents, relying on its technological advantages and resource integration advantages to establish a titanium industry 'Jinting' aircraft carrier that will influence the world market.
　　 The high-end titanium materials industry is accelerating its development.
　　 Commentator, This Newspaper
　　This year marks the beginning of the 'Twelfth Five-Year Plan', and the 12th World Titanium Conference will be held for the first time in a developing country – China. These events have brought positive expectations for the development of China's titanium industry. Known as the 'space, ocean, all-purpose, and strategic metal', titanium is a significant new metal material in the field of contemporary high-tech new materials, and is an important material support for the development of strategic emerging industries such as aerospace, new energy, energy conservation and environmental protection, and advanced equipment manufacturing. In these high-end industrial sectors, the 'titanium content' (i.e., the amount of titanium used) is an important indicator to assess a country's industrial development level.
　　China has become the fourth country in the world with a complete titanium industry system. According to data from the China Nonferrous Metals Industry Association, in 2010, China's sponge titanium production reached 29,000 tons, and titanium processed materials reached 15,000 tons, demonstrating the rapid progress in China's titanium industry processing capabilities and the rapid growth of domestic demand. In recent years, professional talents have continuously joined the titanium industry, injecting new vitality into the industry. With significant improvements in titanium industry equipment conditions, China is also making continuous progress in titanium technology research, and has improved China's titanium technology level through the implementation of national science and technology support projects and enterprise independent innovation projects.
　　China's titanium research still lags behind international advanced levels, mainly manifested in more process research and insufficient related basic research; common research methods are already available, but the depth of research is insufficient; and new applications research is not given enough attention, resulting in a narrow application range for titanium. Therefore, we need to continuously seek and explore good models to accelerate the development of China's titanium industry, especially the high-end titanium material processing industry.
　　Within a five-year plan, Xiangtou Jinting Technology Company has achieved a transformation of its industrial development mode, breaking through the core technology of high-end titanium materials large-scale wide titanium strip coils, successfully achieving China's titanium industry's 'first rolling', and perfectly building a full industrial chain layout for the titanium industry. Its 'China speed' development provides a 'Jinting model' for the development of China's titanium industry and the entire strategic emerging industry. We not only need core technological innovation in strategic emerging industries, but also focus on how to scientifically, rationally, and rapidly develop strategic emerging industries, continuously creating 'China speed' in high-tech industries worldwide.