On August 21st, Baosteel officially signed strategic cooperation agreement with Jinneng Company Limited in Shanghai. Both sides expressed the willingness to further display respective strength in steel manufacturing and resource exploitation, to unceasingly strengthen and promote all-around cooperation in realizing mutual support, complementarity, long-term cooperation, co-development. General manager of Baosteel Group Cooperation He Wenbo, general manager of Baoshan Iron and Steel Co., Ltd. and Chairman of Baosteel Resources Dai Zhihao; Chairman and party secretary of Jinneng Liu Jianzhong, vice Chairman, deputy party secretary and general manager Cao Yaofeng, etc. attended the signing ceremony.
Jinneng Company Limited is a modern comprehensive energy group with diversified presence in integrated industries of coal manufacturing, electrical power supply, trade, logistics, new energy, gas etc. established with approval from the Shanxi provincial people's government through merger and restructure of former Shanxi Coal Transportation and Sales Co., Ltd. and Shanxi International Electricity Limited Company. Till the end of 12th Five-Year Plan, Jinneng would realize operating revenue of over 250 billion yuan with coal production of 100MT, coal trading volume of 300MT, equipped capacity of power generation over 10 million kilowatt, equipped capacity of new energy power generation over 2 million kilowatt.
Dai Zhihao and Cao Yaofeng signed on the strategic cooperation agreement on behalf of the two sides. According to agreement, Baosteel and Jinneng would consistently promote cooperation between each other in areas of coal trading, coal resource exploitation, coal logistics, information industrialization construction, energy saving, environment protection; unceasingly enhance system competitiveness of upstream and downstream of industrial chain of both sides to cope with serious market challenge together through establishment of mechanism of fixed term high-level meeting, strengthening and developing mechanism of short-term visiting, learning and communication by personnel from the both sides, enhancing technical communication mechanism, etc.. During the ceremony, Baosteel Resources, Jinneng Changzhi Company and Jiuding Xinyang Company also signed the contract for establishment of joint venture Shanghai Baolijin Logistics Co., Ltd..
During communication, Liu Jianzhong introduced in detail restructuring, development of Jinneng, its optimization of industrial sections, a hundred million tons level coal base construction, etc.. Liu Jianzhong stated, as the leader of Chinese iron and steel industry, Baosteel had accumulated rich experience in enterprise development philosophy, modern management mode, and information industrialization construction, etc.. He hoped both sides would unceasingly deepen cooperation in new energy, newly emergent industries, digitalized mine construction, energy saving, environment protection, etc. through establishment of long-term strategic cooperation relationship, and enhance overall management expertise and market competitiveness in a continued way during restructuring to realize leap-forward development.
He Wenbo and Dai Zhihao expressed warm welcome for visit of the high-level delegation from Jinneng and hearty thanks for the long-term strong support from Jinneng in guaranteed resource supply, etc.. After a brief introduction to current construction, development, management, and diversified industrial development in Baosteel, He Wenbo pointed out, during key phase in China's economic restructuring and upgrading, both Baosteel and Jinneng faced redundant production capacity, fierce market competition, requirement for speeding up of restructuring and development; he hoped both sides could further strengthen linked operation of the industrial chain, continuously enhance project cooperation in establishment of an information society, e-commerce, capital operation, energy saving and environment protection to mutually improve overall operational and managerial level, and to actively cope with severe market challenge with concerted efforts.
