A Historical Study of Manufacturing Structure at the Benxi Steel Complex in Manchuria

Abstract

This thesis studies the Benxi Steel Complex which was constructed at Penshifu (Benxi), Manchuria by a Japanese zaibatsu group named Okura. It focuses on this Complex's development from its beginning in 1906 to 1945, when it was taken over by China following the Japanese defeat in World War 2. There are a few existing studies on the Complex. But these studies do not offer a good analysis of its overall industrial history. This thesis aims to analyze the Complex's whole history and its development with a reference to its manufacturing structure. The Complex was originally a coal mining company. After Okura Group acquired the mining rights of the Miaoergou's iron ore mine, the Complex became a pig iron maker. Penshifu was an ideal place for steel making, because there were in its vicinity all kind of mines including iron ore, coal and limestone. However, because iron ore is magnetite poor ore, the Complex had to acquire specific manufacturing technologies such as magnetic concentration and low phosphorus pig iron manufacturing. The Complex produced low phosphorus pig iron which the Japanese Navy needed. After the Manchurian Incident, the munitions boom occurred, benefitting the company. The Complex then started to expand its manufacturing facilities. After 1937, the Complex executed "The Manchukuo Industry Five Year Program", and constructed a special steel manufacturing division. However, the complex ran into financial difficulties, and failed in the full-scale production of special steel.