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Baosteel Expands Strategic Cooperation with CSSC
01/12/2009 - Baosteel Group signs strategic cooperation agreement with CSSC, the leading company in China's ship-building industry and the largest national ship-building group.
Baosteel Group Co. has signed a strategic cooperation agreement with CSSC, the leading company in China's ship-building industry and the largest national ship-building group.
Based on their new agreement, the two companies will continue to deepen their cooperation in an effort to cope with the negative influence of the ongoing economic crisis. The two companies will continue to cooperate in a range of areas, from steel supply, technical development, and logistic distribution to metal processing, information sharing, after-sales service and enterprise management.
Baosteel and CSSC’s cooperative relationship began in Oct. 2001 when they co-founded Shanghai Waigaoqiao Shipbuilding Co., Ltd. In Dec. 2003, the two companies deepened their working relationship when they signed a memo of cooperation to commonly promote development and reorganization of the Shanghai ship-building industry. In Feb. 2005, the companies entered an overall strategic cooperation agreement under which CSSC places preference on Baosteel plates in its procurement, and Baosteel provides its supply with priority. This year, CSSC’s total procurement of Baosteel plates is expected to grow by as much as 20% or more over last year.
The ceremony for signing the new cooperative agreement was attended by Baosteel Group Board Chairman Xu Lejiang, President He Wenbo, CSSC company President Mr. Tan Zuojun, Chief Accountant Mr. Sun Yunfei were present at the signing ceremony. Baosteel Co., Ltd Deputy President Mr. Li Yongxiang was presiding over the ceremony. Representing on their companies respectively, Baosteel Co., Ltd Deputy President Mr. Jiang Licheng and CSSC Assistant to President Mr. Sun Wei signed on the strategic cooperation agreement.
CSSC, the leading company in China's ship-building industry, is also a core manufacturer of navy equipment.
Commenting on the new cooperative agreement, CSSC company President Tan Zuojun noted that Baosteel is the biggest ship plate supplier for CSSC as well as one of its most significant strategic cooperation partners. He said that since the first signing of their overall strategic cooperative agreement, Baosteel has been always committed to meeting the requirements of the ship builder on ship plates, and CSSC has received tremendous support. From now on, he said that CSSC would continue to maintain the long-term cooperation, exempting market risk and bring the strategic cooperation to a higher level.
Baosteel Group Board Chairman Xu Lejiang noted that the needs of CSSC have served as the driving force of constant progress for Baosteel heavy plate products. He said that the establishment of Baosteel’s 5m heavy plate project and operation of the Luojing heavy plate base have helped to enhance Baosteel ship plates’ production technology and logistic capability to great extent.
