African Entrepreneurship Chronicles: Rise of a Hohenzollern Prince
Chapter 989

Steel Industry in the First Five-Year Plan

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"Since the end of the nineteenth century, the steel industry had undergone major changes. Technological progress had brought sweeping changes to its production structure and site selection. As efficiency improved, the steel industry's demand for coal declined, and its dominant industrial factor shifted from coal to iron ore."

"Moreover, factors such as transportation and markets meant that the entire steel industry needed major reforms. Take transportation, for example: the railway network had initially taken shape, while the development of roads and internal-combustion vehicles allowed more resources to circulate across the country's interior. A typical example was the development of New Frankfurt City's steel industry. Almost all its raw materials and energy came from other regions; locally, it had neither iron mines nor coal mines, nor any other basic resources needed for industrial development."

"Ocean shipping and inland water transport had also greatly changed East Africa's industrial landscape. As the times advanced and technology continuously improved, ships grew ever larger and carried ever more cargo, driving industrial development in coastal areas and inland waterway hubs. Typical examples included Mwanza in the Great Lakes Region and East Africa's various coastal cities."

"Returning to what was said earlier, the steel industry's demand for coking coal had now declined, while transportation costs had likewise fallen. This was bound to impact our country's traditional steel industry layout."

"Therefore, the tasks and targets for our steel industry during the First Five-Year Plan should also be adjusted accordingly. On one hand, we must adapt measures to local conditions and focus construction around iron ore production areas. On the other, we must use transportation and markets as guides to arrange our country's steel industry more rationally."

During the nineteenth century and earlier, coal resources had been the main factor determining steel industry locations. Typical examples included coal mining

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