Wuhan Iron & Steel erects World Tide of Silicon Steel and Automobile Plates

As usual, when Master Li from the cold-rolled silicon steel mill at Wuhan Iron and Steel Co., Ltd. was absent for a long time, a significant production issue arose. “Working here for just one hour can be worth 100,000 yuan,” he once said, highlighting the high value of the work done in his department. Last week, Wuhan Iron and Steel disclosed that Master Li’s team specializes in producing oriented silicon steel, a material that only their company can manufacture in China. The price per ton of this premium steel is 1.5 times higher than ordinary steel. As Master Li explained, a single worker in the workshop could generate an output value of 100,000 yuan in just one hour. Silicon steel, often referred to as “steel handicrafts,” represents the pinnacle of steelmaking technology today. In 1976, Wuhan Iron and Steel introduced Japan's cold-rolled silicon steel production line, filling a critical gap in China’s industrial capabilities. Over the past three decades, despite international technological barriers, the company has invested over 100 million yuan into special upgrades, constructing two major silicon steel plants and developing numerous proprietary technologies to maintain its leadership in domestic cold-rolled silicon steel production. Members of the WISCO silicon steel R&D team still recall the breakthrough on February 20, 2005, when they successfully developed low-temperature-oriented silicon steel. This achievement placed them among a select few globally with such advanced technology, which is classified as a state secret. This year, Wuhan Iron and Steel aims to produce 1.1 million tons of silicon steel. By 2010, the first three silicon steel plants are expected to be operational, with total output exceeding 1.6 million tons, positioning the company as a global leader in silicon steel production. In addition to silicon steel, WISCO is also known for its automotive steel products, or "car boards." In 2006, the company invested over 8 billion yuan in a new cold rolling mill dedicated to high-end auto panels. Last year, WISCO captured 7% of the domestic auto sheet market, and this year it expects to contract 1 million tons, including 20,000 tons of galvanized sheets—each ton capable of equipping 1,000 cars. Three years ago, Dongfeng Motor expressed confidence in WISCO’s auto steel, leading to a strategic partnership. More recently, Chery joined forces with WISCO, creating a powerful alliance between two Chinese car brands aiming to drive innovation through independent intellectual property. Even American companies like Nobel, a leading laser tailor-welding firm, have chosen WISCO for its automotive steel. Nobel CEO Thomas praised WISCO’s materials for their superior welding performance, making them ideal for advanced car body manufacturing. Laser welding, now the most advanced technique in car body production, allows for the joining of different thicknesses, coatings, and materials, reducing weight and increasing impact resistance while cutting costs by 15%. This technology is key to future automotive development. At a recent science and technology conference, WISCO outlined its vision: to become the world’s most competitive producer of cold-rolled silicon steel and a major supplier of auto plates in China. Under the “Eleventh Five-Year Plan,” the company will invest around 40 billion yuan in technological upgrades, far surpassing previous efforts. With the national steel industry expected to grow steadily, reaching 460 million tons of crude steel this year, the outlook is positive. However, regulatory pressures are intensifying. The government is accelerating efforts to eliminate outdated production capacity, promote regional restructuring, and control steel exports, signaling a shift toward quality over quantity. The State Council has encouraged the consolidation of large steel enterprises, pushing for cross-regional and cross-ownership reorganization to build a globally competitive steel giant. Export policies have also tightened, with many steel products now subject to license controls and zero tax rebates, indicating a move away from exporting low-value steel. Finally, the country has set strict targets to phase out outdated production capacity, linking this effort to energy conservation and emission reduction. The National Development and Reform Commission has issued “military orders” to major steel provinces, requiring them to report and track the elimination of obsolete facilities. This year alone, 30 million tons of refined steel and 35 million tons of iron production capacity will be phased out, marking a major step in the industry’s transformation.

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