On Sept. 26, the completion ceremony of BGM Company, the steel processing & distribution center jointly built by Howa Trading Company, Baosteel Internation and GNS Company, Korea, was held in Kyungki-do, Korea. He Wenbo, Managing Director of Baosteel Group Co., Ltd., Zhang Xinsen, China's Ambassador to Korea, Wang Jing, Vice President of Baosteel Co., Ltd., Nan Zhongxi, Deputy Governor of Kyungki-do, Korea, Jin Changgui, Director of Industrial Trade & Resources Ministry, Korea, Sunil Bang, Senior Director of GMK, Kong Bingcai, Director of GNS Company, as well as client representatives of BGM, altogether 200 personnel have participated in the ceremony.
BGM is the first steel processing & distribution JV , invested, built and operated by Baosteel out of China. With urgent task and short duration, under the great concerns and support of Baosteel leaders, trans-departmental cooperation has ensure the smooth completion of this project. The successful construction, production and operation of BGM has practically taken a solid step to perfect Baosteel's overseas supply chain system build-up, intensify overseas client service and accelerate globalization operation of Baosteel.
BGM Company is jointly built by Howa Trading Company, subsidiary of Baosteel Co., Ltd., Baosteel International and GNS Company, Korea, with designed annual capacity of 110,000t. The production and operation of this processing & distribution center has marked that Baosteel has owned perfect supply chain in korea's market earlier than Japanese, Taiwan and other China's inland competitors, which raises the threshold to other steel works to enter medium & high end market, putting BGM in quite advantageous position in the intensified Korean market.
BGM processing & distribution center will supply such JIT services as storage, cutting and distribution of automotive sheet for GMK, etc. So as to further improve the comprehensive competitiveness of Baosteel's products in Korea. Baosteel and GM have built up long term strategic partnership in the global range. Baosteel officially started to supply automotive sheet to GMK from 2008. Our product quality has earned highly recognition from the clients, with sales volume increasing year by year. In order to meet the GMK's requirement to supply high quality product as well as excellent processing & distribution services, Baosteel has decided to invest such processing & distribution center.
He Wenbo has reiterated in the ceremony that in order to realize the vision to be the leader of steel technology, driver of green industry chain and demonstrator of joint development for employees and corporation, Baosteel has proposed the strategic transformation plan from Steel to Material; from Manufacturing to Service; from China to the World. The establishment of BGM processing & distribution center could embody the concept of from Manufacturing to Service, further perfecting Baosteel's supply chain, providing closer, more convenient and far better services to such overseas clients as GMK, so as to make contributions for our clients to improve product competitiveness. Meanwhile, He also requests that in future business operation, BGM shall strictly obey Korea's law and relevant policies, take more social responsibilities in employment, tax, environmental protection and public charity, etc. To become a corporate with integrity. Facing with new operation environment, we need to know more about market, be more close to our clients, provide best services to them and try our best to meet all the requirements proposed by the end user, making BGM an excellent corporation with confidence, health and sustainability.
