Iron and steel is one of the most important raw material industries in China. For this study, the Standardization Administration of the People's Republic of China (SAC) has chosen a large enterprise positioned in the downstream segment of the iron and steel industry value chain: Xinxing Ductile Iron Pipes Co. Ltd. (referred to as Xinxing).
Xinxing’s production involves iron and steel making, steel rolling and pipe casting. Its main products include three types of cast pipes, steel products and steel grating plate products. The company has a number of subsidiaries and branch companies in different parts of China, including ten companies located in North and Southwest China as well as in China’s Special Administrative Region, Hong Kong. It employs nearly 17 500 people with nearly 5 300 involved in the business functions falling within the scope of the assessment. Xinxing widely uses external standards and many internal operating rules and standards and participates in the development of International Standards, Chinese National Standards and Industry Standards. It is certified to quality, environmental, and health and safety management systems and has received several product certifications.
The scope of this study covers Xinxing operations in the Wuan Industrial Zone and involves the production of case pipes and steel products. The assessment covers the business functions of Management and administration, R&D, Engineering, Procurement, Production/operation, Marketing and sales, and After-sales service. The greatest economic benefit of standards has been achieved in production where Xinxing applies the latest standards in a very timely manner, resulting in simpler and more effective processes, allowing to reduce costs, increase machine operating uptime, reduce equipment downtime and the number of defective products. The contribution of standards to the company EBIT is close to 14%, corresponding to 0.67% of the annual sales revenue for 2010.