September 3, HBIS CCP and Group Chairman Yu Yong met Duferco Chairman Bruno Bolfo and listened to the performance presenatation of the company made by Duferco CEO Matthew De Morgan. Mr.Yu gave his comments and instruction to the operation of the company and HBIS Vice President Liu Jian accompanied him. ?xml:namespace>
Yu Yong introduced the current economy in China and said that the Chinese was pursuing a high quality economic growth and the steel industry was making it green and innovative. The Chinese is pushing a super low emission standard in steel industry and some emission readings of steel mills have made to world’s top level. With environmental protection operations, air quality has been improving and the Chinese steel industry also has been upgrading very well.
Yu Yong also introduced the group’s plan of HBIS Serbia to Bruno and said that the group was about to make the Serbian mill one of the most competitive steel mills in Europe in five years. HBIS Serbia is already stablized and the group will continue to inject advanced technologies to improve its energy consumption efficiency and environmental standard. Those HBIS technologies will bring benefits to both the company and local communities. Besides competitive products, the application of secondary energy of HBIS Serbia will also be improved.
To the development of Duferco, Yu Yong emphasized that the company should always find its way to improve and upgrade, while strengthening its traditional business. Though facing global trade frictions and challenges in traditional business, HBIS Duferco owns strong capabilities of resisting those risks via its specialized sales channels and the huge number of clients. They are all valuable assets of the company. We should be confident of standing firm in traditional business, and making proper reform according to environment to cope with market changes. All industries are seeking changes and many business are no longer selling/buying deals, instead, transactions are help the partners to add value to the processes. Besides volumes, the company should look closely at the potential resources brought by the clients. HBIS is open to a diversified business strategy of Duferco and Duferco could develop its business that it is familiar with as long as it could be coordinated with the existing management system.
Yu Yong emphasized Duferco should pay attention to the business return. The globalized Duferco, its supply chain, sales chain is what HBIS is after. HBIS cares about the expansion of Duferco business wishes that Duferco could thoroughly study the business performances and future returns of its target companies in future M&A deals.
Bruno highly praised the astonshing accomplishment of Chinese economy and thanked Mr.Yu Yong for sharing the important information. He also gave his comments to the world market and development of steel industry and said with the rise of protectionism world wide and structural slowing down of the gloal steel industry, the steel industry was facing long term difficulties. Duferco would strengthen its traditional business and seek a diversified development.