Since the establishment of Zibo Yuantai Refractory Materials Co., Ltd. in 2003, it has started to act as an agent for well-known raw material companies at home and abroad. Then in 2006, Shandong Zhongnai High Temperature Materials Co., Ltd. was established to produce high-quality active α-Al2O3 and calcined α-Al2O3. Then in 2014, Shandong Hengjia High Purity Aluminum Technology Co., Ltd. was established, mainly producing sintered corundum and sintered magnesia alumina spinel products.
From acting as an agent for refractory raw materials to independently producing high-end refractory raw materials to replace imported products, Mr. Shao Changbo, the head of the three companies, has written a legend of refractory raw materials enterprises. We are fortunate to invite Mr. Shao to show us his legendary entrepreneurial and development history.
Wang Yanru from Refractory Window: First of all, thank you Mr. Shao for accepting my interview. I have only heard a little about Mr. Shao’s entrepreneurship and development history. Please give us a brief introduction, which may provide a reference for the development of some industry enterprises.
Mr. Shao: I graduated with a degree in refractory materials in 1998, just in time for the last economic crisis, when state-owned refractory companies were generally in trouble. I was recommended by my teacher to work at Zibo Kelu Company, where I worked on refractory technology for circulating fluidized bed boilers. Then, I had the opportunity to meet experts from Elkem and Qenos, and I felt that there was a big gap between my country and foreign advanced technology at that time. Later, I established Zibo Yuantai Refractory Materials Co., Ltd., which mainly acts as the Shandong general agent for foreign brand refractory raw materials. In the process of being an agent, I gradually understood the importance that foreign companies attach to the quality stability of refractory raw materials and customer application technology research.
In the process of acting as an agent for silicon micropowder and refractory cement, we found that high-temperature alumina micropowder, which is also one of the three major refractory raw materials, was also monopolized by foreign companies. So we decided to analyze and develop high-quality active α-Al2O3 micropowder.
In 2006, we purchased 50 mu of land and officially started to build a factory. We started with small-scale production in a downdraft kiln and built a 108-meter tunnel kiln for large-scale production in 2009. We have always adhered to the quality policy of "high quality and stability" step by step. Facts have proved that product quality is the best marketing method for enterprises. The high-quality active α-Al2O3 micro-powder products produced by the company are highly recognized by customers and the products have been in short supply.
In 2016, in order to enrich the product line, we invested in the construction of an advanced high-temperature rotary kiln production line for the production of high-quality calcined α-Al2O3 micropowder, with an annual production capacity of 15,000 tons. The trial production has been completed and the normal scale production will be carried out in 2017.
The company's long-term development positioning is to research and develop and produce high-quality alumina-based high-purity refractory raw materials. As the company's scale continues to grow, Shandong Hengjia High Purity Aluminum Technology Co., Ltd. was established in 2014. Currently, the first phase of the 20,000-ton plate corundum production line has been put on the market and has received a good market response.
Wang Yanru from Refractory Window: It is known that raw materials produced or imported by foreign-funded enterprises are known for their stable quality, so their prices are much higher than domestic materials. Mr. Shao seems to have been committed to producing high-end refractory raw materials to replace imported products. I would like to know how Mr. Shao has managed to independently produce raw materials that can replace or be comparable to imported raw materials?
Mr. Shao: Yes. Stable quality is the advantage of foreign-funded enterprises. All enterprises claim that quality is the first priority, but not many actually do so.
I think we must have a deep understanding of quality. First of all, what kind of quality do customers need? Why do they need it? How do we achieve it? How do we effectively control quality? How do we verify the quality? And so on... All of these are technical issues, and they cannot be solved by saying that we value quality. This requires long-term professional, dedicated, and focused in-depth research to achieve. If it is only for the sake of making money, it is difficult to achieve. I am a technical person, and studying these is my interest. I will make money and then invest in continuing to study technology.
Therefore, we built our own laboratory at the beginning. As the scale expanded, the investment in laboratory equipment continued to increase. In particular, since 2013, we have invested more than 8 million yuan to install the most advanced X-ray fluorescence analyzer (XRF), X-ray diffraction analyzer (XRD), scanning electron microscope (SEM), Malvern laser particle size analyzer, nano particle size analyzer, nitrogen adsorption BET, high temperature flexure tester, load-soft creep tester, thermal shock tester, pressure tester, flexure tester and other quality inspection and testing equipment. Thus, we have realized the "rapid online detection and analysis" of our products like foreign-funded enterprises, laying a solid foundation for ensuring high quality and stability.
Wang Yanru from Refractory Window: The sintered corundum market is highly competitive. As a new sintered corundum company, how did Mr. Shao deal with the competition from veterans, and what methods did he use to make Hengjia stand out in the market?
Mr. Shao: Yes, the competition in the sintered corundum market is indeed fierce. After analysis, we found that only by competing with differentiated product quality can we achieve success. This is also the reason why we started the plate corundum project.
I remember that at a meeting, Professor Ye raised the quality problem of domestic sintered corundum. During the exchange, he said, "Whether domestic products can be made, they will eventually look like foreign products, but they are not." Therefore, we believe that products of different qualities have different uses, that is, different application markets. As long as the product quality is distinctive, there will be a market. Our sintered corundum products are now denser (bulk density 3.6g/cm3), stronger, and have improved thermal shock resistance. The size of our plate-shaped corundum crystals can truly reach the level of foreign companies. These differences from others are the fundamental guarantee for our foothold in the market.
Wang Yanru, Refractory Window: In view of the fact that foreign customers pay on time, both domestic raw material companies and product companies are keen to explore foreign markets. As for our raw material products such as sintered corundum, alumina, spinel, etc. in the international market, what do you think are our advantages?
Mr. Shao: At present, the overseas markets opened up by domestic enterprises are basically based on low prices. We are now mainly exporting sintered corundum to maintain the operation of the production line. In the next step, we will gradually shift the focus to the export of plate-shaped corundum.
Wang Yanru from Refractory Window: I have recently received feedback that some companies are willing to lower product quality in order to cope with competition from their peers. What do you think about this?
Mr. Shao: We are not in a position to comment on this. However, the market is divided into different levels. Low-quality and low-priced products are in great demand. Since customers need such products, of course someone has to produce them to meet the demand. This is actually a matter of mutual selection between customers and manufacturers. It has nothing to do with anything else.
Wang Yanru from Refractory Window: Judging from Mr. Shao’s development history, his goals have always been far away. What new plans and goals will he have in 2017?
Mr. Shao: In 2017, we will focus on the official production of high-quality calcined α-Al2O3 powder in rotary kiln and the construction of the second production line of tabular corundum. In terms of quality, we will continue to increase the investment in test equipment and talent introduction, and continue to improve product quality. In addition, our company did not have sales staff before, and all sales relied on product quality and reputation. At present, with the rapid growth of the company's production and sales, it is necessary to establish a complete sales network, which is also a focus of work in 2017. I hope that people of insight in the refractory industry will join us to seek common development.
Wang Yanru, Refractory Window: In September 2016, Mr. Shao's Hengjia Company's sintered corundum was put on the market and was recognized by companies producing skateboards and breathable bricks. I believe that with Mr. Shao's persistence and perseverance, Hengjia will win the favor of more users. I wish Mr. Shao a happy new year in advance, and hope that his career will be as prosperous as sesame seeds.
Mr. Shao: Thank you Refractory Window, thank you everyone! Happy New Year and happy family!
Editor: Wang Yanru