African Entrepreneurship Records

Chapter 984 The Iron and Steel Industry of the First Five-Year Plan

"Since the late 19th century, the steel industry has undergone major changes. Because of technological advancement, the production structure and location of the steel industry have undergone major changes. Because of increased efficiency, the demand for coal in the steel industry has declined, and the dominance of the steel industry has The industrial factor shifted from coal to iron ore.”

"And because of the influence of transportation and market factors, the entire steel industry should make major changes. Take transportation as an example, the railway network has taken initial shape, and the development of highways and internal combustion engine vehicles has allowed more resources to be distributed in the inland areas of the country. Regions interact, a typical example is the development of the steel industry in New Frankfurt. Almost all of its raw materials and energy come from other regions, and there are neither iron ore nor coal mines and other basic resources for industrial development. "

“The ocean transportation industry and inland water transportation have also greatly changed the current industrial structure of East Africa. With the advancement of the times, technology continues to improve, ships are being built larger and larger, and more and more goods are hauled, which promotes the coastal and Typical examples of industrial development in inland water transport hub areas are Mwanza in the Great Lakes region and various coastal cities in East Africa.”

“Going back to what I said before, the steel industry’s demand for coking coal has dropped, and transportation costs have also dropped, which is bound to have an impact on my country’s traditional steel industry pattern.”

"Therefore, the task requirements for improving my country's steel industry during the First Five-Year Plan should also be adjusted accordingly. On the one hand, it is based on local conditions, focusing on iron ore producing areas as the main construction direction. On the other hand, it is transportation and market-oriented and more reasonable. Lay out my country’s steel industry.”

In the 19th century and before, the steel industry was mainly based on coal resources as the dominant location factor. Typical examples were local coal mining in the UK, which helped the UK become the world's first industrial country, the Northeast Industrial Area in the United States, the Ruhr Area in Germany, and Mata in East Africa. Most of the steel industries are built near coal mines, such as the Bele Province Industrial Zone and the Lake Malawi Industrial Zone.

 The immaturity of technology in the early stage resulted in the iron and steel industry's inefficient use of coal and its large demand for coal. As a result, if the iron and steel industry is not built near coal mines, transportation costs will be high.

After the mid-19th century, the steel industry ushered in a technological revolution. With the promotion and application of new technologies such as the Thomas Steelmaking Method, the steel industry ushered in major changes. By the beginning of the 20th century, the steel industry's dependence on coal production areas had greatly shrunk. .

 In other words, even if a steel plant is not built in a coal-producing area, but in a railway-producing area, the cost is already equivalent or even lower.

"So starting from 1900, our country's steel industry will focus on the construction of the steel industry in central and southern Angola in western Angola, the northern part of Southwest Province, Tete Province in Mozambique, the Lake Malawi Industrial Zone, and promote the provinces of Bohemia, Lorraine, Industrial upgrading of traditional steel industry areas such as Hanseatic Province (northeast of South Africa and southwestern coast of Mozambique).”

The iron ore resources in East Africa are relatively evenly distributed across the country, but the main reserves are still in the central and southern regions, and they overlap with the main producing areas of East African coal mines. This allows heavy industrial areas such as Bohemia Province (Zimbabwe) to still maintain the advantages of their traditional steel industry. status.

 Among them, Tete Province in Mozambique is special. As a post-development area in East Africa, it is rich in iron ore and coal resources. It is also located on the southern shore of Lake Malawi and belongs to the Lake Malawi Industrial Zone like Mbeya City in the north.

South-central Angola and the northern part of the Southwest Province, which is the area bordering Namibia and Angola in the previous life, are mainly rich in iron ore resources. However, due to transportation and climate reasons, the focus of its steel industry development is definitely biased towards the Angolan side, which is Letania. within the province.

"Before the end of 1905, our country's steel production exceeded at least five million tons, with three new steel production bases and four new large-scale state-owned steel companies, namely Tete Province Steel Plant No. 1 and Steel Plant No. 2, and Letania Province Steel Plant. Plant 1, Maputo City Steel Plant, and reconstruction and expansion projects for existing steel industries, including Mbeya, Harare, Bulawayo, New Hamburg Port, Mombasa, Dar es Salaam, etc. region’s steel industry.”

Maputo City is close to the New Hamburg Port City, a city with a strong steel industry. It can make full use of coal, steel and other resources in the South African plateau area, and has outstanding maritime transportation advantages.

Tete Province is even more remarkable. It has significant resource advantages and is located between the Lake Malawi Industrial Zone and the Bohemian Industrial Zone. With the construction of the Colimane Railway in Tete Province, it has been completed. , and being close to the Zambezi River, with comprehensive advantages such as geography, transportation, water resources, and society, it ranks first among the newly planned steel industry bases in East Africa. Therefore, the East African government plans to invest in two large state-owned steel companies in Tete Province at once. After all, relying on the two most developed heavy industry regions in East Africa, it is difficult to succeed.

In contrast, the East African government is more cautious in investing in the steel industry in Letania Province. It is far away from the traditional industrial zone of East Africa and is relatively lacking in personnel and technology. It is not easy to undertake industrial transfers, and the development time of this province is late. The industrial base is relatively weak.

Letania Province is one of the four provinces of Angola, and the early construction of Angola in East Africa focused on coastal cities such as Cabinda and Luanda. Therefore, the difficulty of developing the steel industry in Letania Province is three preset new The most difficult among the steel industry bases.

Not to mention other things, the transportation conditions alone are far inferior to those of Tete Province and Maputo City. Tete Province is on the East African railway trunk line, and the Maputo City Railway has been completed long ago. It is the first in East Africa to be built and put into use in Mozambique. On the other hand, the province of Letania, as the southernmost part of Angola, has no other railway lines except the Atlantic Coast Railway.

However, the Atlantic Coast Railway passes through the Leitania Province area, which is not an iron ore producing area. Therefore, if the Letania Province Steel Plant is to be built and put into operation, a lot of effort must be made in transportation.

Of course, compared to other regions, the conditions in Letania Province are already quite good. After all, many places do not even have iron ore or coal resources, and do not have the basic conditions for investment in the steel industry.

In addition to the above three new steel industry bases, East Africa will build a number of inland or coastal small and medium-sized steel companies during the First Five-Year Plan period to meet the region's steel needs.

These small and medium-sized steel companies will be concentrated in transportation hubs or regional centers relying on policies. For example, northern East Africa is relatively lacking in related minerals, so northern East Africa will be the key investment area for this type of enterprises.

However, based on the current capabilities of East Africa, it is estimated that the scale of investment will not be too large. After all, the country of East Africa is too large and the government does not have much energy to take care of all places.

The above is the general situation of steel investment in East Africa during the First Five-Year Plan. The current steel production in East Africa is about three million tons, only after the United States, Germany and the United Kingdom, and ahead of Tsarist Russia and France. The Austro-Hungarian Empire has just broken through. 1.1 million tons, ranking second to France.

In other words, in terms of steel production alone, the United States, Germany, the United Kingdom, East Africa and Tsarist Russia are in an absolute leading position compared to other countries. Among them, Tsarist Russia has the lowest steel production of more than two million tons, while East Africa is between Tsarist Russia and the United Kingdom. time, which is about three million tons.

If East Africa's steel production exceeded five million tons in 1905, its world ranking would not change much, because in 1900, the United Kingdom, the world's third largest steel producer, had already reached close to five million tons. In 1905, British steel production should have reached at least six million tons.

As for Germany and the United States, they have no reference value at all and are far ahead of other countries. Although the gap between Germany and the United Kingdom is not too big at present, the growth rate of the German steel industry is much higher than that of the United Kingdom. By 1905, I am afraid that Germany will have It has become the only country in the world with steel production exceeding 10 million tons, leading all other countries except the United States by a cliff.

 (End of this chapter)