June 5th, HBIS and Shanghai Electric signed their Full Industrial Chain Strategic Cooperation Framework Agreement in Shanghai and the parties would strengthen their cooperation by focusing on high end equipment manufacturing and explore an full industrial strategic partnership. They will deepen their coordination and define new business models to connect the HBIS steel industrial chain and Shanghai Electric manufacturing chain to extend the add-value. The joint venture of HBIS & Shanghai Electric Metal Material R&D Center was launch on the same day and HBIS CCP & Group Chairman Yu Yong, Shanghai Electric CCP & Group Chairman Zheng Jianhua revealed the plaque for the center. ?xml:namespace>
In the meeting, Yu Yong said that both HBIS and Shanghai Electric were major SOE companies of the country and sharing similar development goals including reforming and upgrading their companies, implementing key national strategies, and enhancing high quality economic and manufacturing development. Their cooperation can be highly coordinated and mutually beneficial, without any competition. The cooperation should be limited to the simple demand/supply and buy/sales, instead, its should be future oriented and should be expanded to a coordinated full industrial chain cooperation, share the resources, complement each other. With this framework agreement we sign today and the newly launched R&D center, the shear of HBIS and its resources would provide strong support to Shanghai Electric.HBIS will play a seller’s role and communicate with Shanghai Electric closely to initiate comprehensive cooperation, including equipment, technology, financing and technology applications.A close strategic partnership will make its own contributions in the high quality Chinese manufacturing industry.
Zheng Jianhua said Shanghai Electric cherish this opportunity dearly and it shared the “Representing The National Industry and Playing National Role”development goal of HBIS. Shanghai Electric is a state level equipment manufacturer in the country and is representing the capability of the country in the international market.In the future, we wish to accomplish more in the world stage, become a giant by competing with other giants. We will become a wold class enterprise and the pride of the country. The same responsibilities, development goal will encourage the parties to strengthen their communication and deepen their cooperation. With its advantages in the industry, Shanghai Electric will certainly provide stronger support and participate the development of HBIS, making it one of the most competitive steel manufacturers. We wish with this new agreement the parties could complement each other and make a mutually winning and close strategic partnership. Hand in hand, the partners will face the world, make a better future and make the country good.
According to the agreement, the parties will adopt the principle of “Mutually complementary, Open & Coordinate, Mutually Beneficial & Winning”. With their existing cooperation, the partners will focus on high end equipment manufacturing and build a full industrial chain strategic partnership. They will jointly build a steel material R&D center, which is dedicated to high end equipment manufacturing by carrying out studies of key technologies and their applications. The cooperation will include technological development, training, technology application and communications. They will deepen their coordination in the whole industrial chain and provide full life cycle solution packages to steel materials and high end equipment. With the logistic advantages of Jing-Jin-Ji and Yangtze River Delta region, the partners will explore opportunities in highly efficient logistic projects to lower their logistic costs. They will cooperate in financing. As strategic investors, they will invest in oversea projects of their partners’, including fixed assets and equities.