Home Page News media Unveiling the Map of Foshan's Stainless Steel Industry: Led by Guangdong Merchants, with Capital from Zhejiang and Jiangsu Pouring in, the Regional Code Behind the Trillion-yuan Cluster

Unveiling the Map of Foshan's Stainless Steel Industry: Led by Guangdong Merchants, with Capital from Zhejiang and Jiangsu Pouring in, the Regional Code Behind the Trillion-yuan Cluster

I. Geographical Distribution: Dominated by local business owners in Guangdong, with capital from the Yangtze River Delta accelerating its penetration

1.Guangdong merchants hold an absolute advantage
Foshan, as a leading city in China's stainless steel industryAt the core of the "Southern School", local entrepreneurs hold a dominant position. For instance, leading enterprises such as Taiyuda Group (registered in Lanshi, Foshan) and Chengde New Materials (founded by Li Quan, a native of Foshan) were all established by Cantonese businesspeople and have rapidly grown by relying on the profound industrial foundation and supply chain resources of the local area46. In addition, local financial institutions in Foshan (such as Foshan Rural Commercial Bank) have long provided financing support to local enterprises, further consolidating the market position of Guangdong merchants.

 

2.Capital is making a strong layout in the Yangtze River Delta
In recent years, capital from the Yangtze River Delta region such as Zhejiang and Jiangsu has permeated the stainless steel industry in Foshan through investment in factory construction, shareholding cooperation and other means. For instance, the global stainless steel giant Qingshan Group (a Zhejiang-based enterprise) supplies raw materials (accounting for the supply volume of the Foshan market)(More than 50%) Deeply participate in the industrial chain of Foshan; Although Jiangsu Delong Group suffered setbacks due to its expansion strategy, its early layout in Foshan still had an impact on the market pattern2. In addition, some enterprises from Jiangsu and Zhejiang have set up processing bases in Foshan through acquisition or joint venture models, targeting the South China market and export opportunities in Southeast Asia.

 

Ii. Current Development Status: The industrial clusters are mature, but internal competition and transformation coexist

1.The effect of industrial clusters worth hundreds of billions of yuan is remarkable
The annual transaction volume of stainless steel in Foshan exceedsWith a revenue of 200 billion yuan, accounting for one-third of the national total, an integrated chain has been formed, covering raw material trade, processing and manufacturing, and terminal products. The professional markets such as Lanshi International Metal Exchange Center and Jin 锠 International Metal Plaza have a prominent agglomeration effect, attracting customers from all over the country and even the world.

 

2.The vicious competition intensifies
The low industry threshold has led to a clustering of small and medium-sized enterprises, resulting in fierce price wars. For example, the profit of colored stainless steel plates comes from each sheetThe price of 20 yuan has been reduced to 2 to 4 yuan, and some enterprises have fallen into losses29. Leading enterprises (such as Taiyuda and Bunker) have achieved intelligent upgrades (such as in industry)Break through with 4.0 factories and high-end customized products to form differentiated competition.

 

3.The obstruction of exports has forced transformation
Due to the high tariffs imposed by the United States and the restrictions on re-export channels in Southeast Asia, the export of stainless steel from Foshan is under pressure. Enterprises have turned to focus on the domestic market, with a particular emphasis on expanding the proportion of architectural decoration in consumptionIn fields such as 22.7%, home appliances (11.3%), etc., and develop high-end products such as ultra-thin precision foils and composite rolls.

 

Iii. Business Orientation: Mainly processing trade, with the rise of high-end customization

1.Traditional business: Processing and bulk trade
Foshan stainless steel enterprises take the processing and wholesale of plates and pipes as their core business. For instance, small and medium-sized enterprises like Xinda Xin and Lianda Shun focus on the processing of metal products and rely on local logistics clusters to reduce supply chain costs.

 

2.Emerging growth points: Customization and smart home
With the upgrading of consumption, the demand for high-end customization has soared. Guangdong Bonke, Fadiao and other enterprises focus on the full-house customized home furnishing market, develop digital production lines, and provide products such as stainless steel cabinets and smart bathrooms, with an annual output value of up to hundreds of millions of yuan.

 

 

3.Green and intelligent transformation
Under the impetus of environmental protection policies, enterprises are accelerating the adoption of short-process smelting and wastewater recycling technologies. For instance, Chengde New Materials InvestmentA 1-billion-yuan zero-emission cold rolling project has been built, setting an industry benchmark.

Iv. Future Trends: Regional Collaboration and Global Layout

1.Deepen the coordination of industrial chains within the province
The connection between Foshan and the home appliance and building materials industries in the Pearl River Delta is close, and it will be further strengthened in the futureThe policy dividend of "trade-in for new" has expanded the application of stainless steel in the field of home appliance renewal.

 

2.Overseas production capacity layout
To circumvent trade barriers, leading enterprises are accelerating the establishment of factories in Vietnam and Thailand. For instance, Hongwang Holdings has established a distribution network in Southeast Asia, taking advantage of the local low-cost labor and tariff benefits.

 

Conclusion: The Breakthrough path of Foshan Stainless Steel in the dance of regional capital

Under the leadership of Guangdong merchants and the boost of capital from the Yangtze River Delta, the stainless steel industry in Foshan has developed a unique characterThe "local deepening + external empowerment" model. Facing the pressure of internal competition and transformation, enterprises need to leverage policies (such as RCEP), technological upgrades and market diversification strategies to continuously consolidate their status as the "Stainless Steel Capital of China". In the future, whoever can break through the bottlenecks of high-end manufacturing and global layout first will be able to remain invincible in this red ocean worth hundreds of billions.