Baosteel and CSSC Signed Agreement for Strategic Cooperation [ 2010-02-02 ]

On Jan. 29, Baosteel Group Corporation and China State Shipbuilding Corporation (CSSC) signed agreement for strategic cooperation in Marine Tower. Chairman Xu Lejiang of Baosteel Group Corporation, president Ma Guoqiang and vice president Zhou Jianfeng of Baoshan Iron & Steel Co., Ltd., president Tan Zuojun, chief accountant Sun Yunfei and president assistant Chen Minjun of China State Shipbuilding Corporation attended the signing ceremony. Assistant president of Baoshan Iron & Steel Co., Ltd. and general manager of Marketing Management Dept. Zhou Shichun, and president assistant of China State Shipbuilding Corporation and general manager of Materials Dept. Sun Wei signed the agreement on behalf of both parties.

In 2005 when Baosteel's 5m heavy plate mill was put into production, it supplied 61,000t hull plate to CSSC, in the meantime, Baosteel started to supply material for the entire ship of 300,000t Float Production Storage and Offloading (FPSO) of Waigaoqiao Shipyard under CSSC; in 2006, Baosteel supplied 342,000t of hull plate to CSSC, and started divided delivery of hull plate for Waigaoqiao Shipyard. Last year Baosteel supplied 2 million tons of hull plate to CSSC accumulatively. Now CSSC has become the largest customer of Baosteel for hull plate. The cooperation with CSSC also tremendously boosts the progress of Baosteel's hull plate manufacturing technology and the improvement of heavy plate logistics management level. In January last year, both parties reached common understanding on "local product delivered by local company, local ship made by local company and local steel used by local company" when signing the annual strategic agreement, and set up the target of building the strategic supply chain with international competitiveness. In the global financial crisis, the cooperation between Baosteel and CSSC kept being pushed forward in an in-depth way.

According to the agreement, CSSC will always give priority to using Baosteel's plate and Baosteel also gives priority to supplying plate to CSSC; CSSC will continue to join hands with Baosteel to build the long-term stable, optimum and most competitive supply chain, deepen the cooperation and evade the market risk, so that the strategic cooperation can be developed to a higher level; Baosteel will actively support CSSC's R&D, manufacture and supply of relevant products in the new business fields such as oil tanker over 250,000 tonnage and offshore oil platform, promote both parties' closer and wider strategic cooperation in a higher level with better service and more stable cost, so as to consolidate both parties' advantageous positions in the industrial chain.

Source:Baosteel News Centre