Henan Xinjinhui Stainless Steel Industry Co., Ltd. was founded in 2005 and has since grown from a small company with an annual output of 50,000 tons of stainless steel to a sprawling enterprise covering 2.5 square kilometers. The company now operates as an integrated industrial cluster, covering the entire supply chain—from raw material acquisition, smelting, plate manufacturing, to deep processing. While many steel companies were struggling during the economic downturn, Xinjinhui not only maintained its stability but also expanded modestly. Even during the 2008 financial crisis, the company continued to grow, proving its resilience and strategic vision.

At the time, China’s construction steel industry was booming, attracting massive investments. However, Xinjinhui chose a different path by focusing on stainless steel—a sector that was less popular at the time. Chairman Shang Xueling explained that the key to success in the low-carbon steel era is to build a strong regional advantage. With logistics costs eating up most of the profit margin, it's no longer feasible to rely solely on cost-cutting. Instead, creating a localized supply chain is essential for maintaining competitiveness.

One of Xinjinhui’s main strategies is leveraging local materials. Since 70% of their raw materials come from scrap stainless steel, they can significantly reduce transportation costs. For a company producing 1 million tons annually, this translates into saving around 91 million yuan per year on logistics alone. This approach not only improves efficiency but also supports sustainability.

Since its establishment, Xinjinhui has operated at full capacity every year. Even during the 2008 financial crisis, when many carbon steel producers struggled, the company maintained 100% operational efficiency. In 2013, despite a challenging market environment, Xinjinhui increased its production capacity by 100,000 tons, reaching 1 million tons annually. That year, the company reported a net profit of 66.012 million yuan.

Despite its success, Xinjinhui remains relatively low-profile. When asked about profits, Chairman Shang Xueling said, “The current environment is tough, and there are many challenges we don’t talk about. We prefer to stay quiet and keep working.”

China’s per capita stainless steel consumption is currently around 17 kilograms, compared to over 30 kilograms in developed Western countries. In 2013, global stainless steel output reached 36.4 million tons, with China producing 18 million tons—nearly half of the world total. As the largest producer, China is well-positioned to become a major consumer and exporter of stainless steel in the future.

Shang Xueling believes that the steel industry is undergoing a major transformation. Companies that adapt quickly to the shift toward stainless steel will thrive. Xinjinhui has been preparing for this transition for years. By building a comprehensive industrial chain—from waste collection, smelting, and processing to product sales and logistics—the company ensures long-term stability and growth.

“You don’t have me, you have me. You’re strong, and I become strong,” Shang Xueling said. He emphasized that the future of stainless steel lies in forming a complete and sustainable industrial ecosystem. Only then can the industry avoid the pitfalls faced by traditional carbon steel producers and continue to grow in a competitive market.