On August 19, the signing ceremony of the Strategic Cooperation Agreement for Entire Industry Chain between China Minmetals Corporation and Hebei Iron & Steel Group Co. Ltd. (HBIS) was held in Beijing. Chairman He Wenbo and HBIS Chairman Yu Yong attended the ceremony and delivered speeches. Yao Ziping, Deputy General Manager of Minmetals, and Peng Zhaofeng, General Manager of HBIS, signed the agreement on behalf of the two sides. Minmetals CFO Shen Ling, HBIS Deputy General Manager Zhang Hai, and HBIS Chief Accountant Liu Zhensuo attended the ceremony. The ceremony was presided over by Feng Guiquan, Deputy General Manager of Minmetals.
Under the agreement, Minmetals and HBIS will engage in strategic cooperation throughout the steel industry chain to usher pragmatic bilateral cooperation in a new stage following the concept of complementary advantages, common benefits and joint development, and making progress hand in hand.
At the signing ceremony, He Wenbo first extended his warm welcome to Yu Yong and his delegation on behalf of Minmetals, and expressed his sincere gratitude to HBIS for its great support over the years. He said that at the dawn of the Chinese Valentine's Day, Minmetals and HBIS gathered together in Beijing to jointly witness the establishment of a close strategic partnership between the two sides for working together for common development through signing the strategic agreement, adding new meanings to the festival.
He Wenbo pointed out there had been long-standing and close cooperation between Minmetals and HBIS. According to him, the signing of this agreement is of great significance, for it upgrades previous cooperation. First, the bilateral cooperation is carried out to boost industrial upgrading and optimize the industrial ecosystem. After years of rapid development, the steel industry has undergone significant changes in its business environment and situation. It faces strategic opportunities for further development and transformation as well as brutal competition resulting from deep reshuffling. HBIS is the largest steel producer in China, while Minmetals is the largest steel distribution service provider in China. The establishment of a strategic partnership throughout the industry chain to jointly integrate resources in the steel industry and jointly seek opportunities for cooperation in Internet, finance and other non-steel sectors is in line with the development trend of the steel industry in the Internet age (openness, cooperation and sharing), and is conducive to the transformation and upgrading of the business operation and distribution model. It can also help guide the standardized, sound development of the industry. Second, it is inter-regional, wide-ranging cooperation between two state-owned enterprises. The two sides will be devoted to cooperation and exchanges in a wide range of fields, including raw materials, steel trading, logistics, E-commerce, finance, and overseas markets, to enhance the level of strategic collaboration. Particularly, against the background of the implementation of the Beijing-Tianjin-Hebei integration policy, the cooperation is more innovative and will serve as a model. Third, the cooperation is carried out on the basis of mutual trust and transparency to transfer positive energy. Both are state-owned enterprises that have a prominent industry position and influence and share the same values and business philosophy. Minmetals will perform the agreement, strengthen corporate governance strictly according to law, honor credibility and abide by rules and regulations, and strive to create and transfer positive energy to the public. He Wenbo hoped that the two sides will strengthen exchanges, fulfill promises, and work together to guard against market risks according to the agreement, so as to achieve common development and make achievements.
In his speech, on behalf of HBIS, Chairman Yu Yong first expressed his heartfelt gratitude to Minmetals for its concern, support and help for years. He pointed out that the signing ceremony of the agreement between HBIS and Minmetals is an important measure for the two sides to carry out long-term, close cooperation for mutual benefits and common development, actively cater to the New Normal of economic development, expand channels of cooperation in a new manner, and further consolidate the advantages of the industry chain. At present, the steel industry is under tremendous pressure to survive and develop. They also face good opportunities to restore the advancement of the steel industry and achieve transformation and upgrading. To take on heavy historical responsibilities and guide industrial development, HBIS will strengthen cooperation throughout the industry chain with Minmetals. It will strengthen cooperation and study in such fields as resource supply, steel trade, E-commerce, logistics services, financial innovation, and overseas markets, so as to gradually establish a model of cooperation that can realize the intent of the two sides and help enterprises achieve sustainable development. To this end, the two sides should support each other for collaborative development, work together to respond to the market impact, break through bottlenecks in the development of the industry, and enhance the overall competitiveness and anti-risk capability of the industry chain. Chairman Yu Yong hoped the two sides will constantly promote mutually beneficial cooperation and usher mutual cooperation in a new historical stage, so as to jointly create and enjoy a better future.
Yao Ziping, Deputy General Manager of Minmetals, and Peng Zhaofeng, General Manager of HBIS, signed the agreement on behalf of the two sides.
Before the signing ceremony, personnel from the two sides had conducted heated exchanges in a manner similar to the forum under the leadership of Chairman He Wenbo and Chairman Yu Yong. He Wenbo mentioned that on his visit to HBIS on July 13, he had learned that despite adverse situation due to the downward pressure on the steel industry, HBIS managed to establish the strategy concept of “restoring the advancement of the major steel industry” through benchmarking with international advanced enterprises, took many measures to cut production and operational costs, and effectively enhanced its quality and core competence. He highly appreciated and was deeply touched by these measures. The visit has also enriched his understanding of HBIS and even the entire steel industry in China. It is necessary for Minmetals to study and draw on the strategic thinking and operational philosophy of HBIS regarding the steel industry. Chairman Yu Yong said that he was shocked and moved by Chairman He Wenbo and his delegation for their initiative visit to HBIS. HBIS attaches great importance to the vision of cooperation proposed by Minmetals, and hoped that the two sides will continue to deepen cooperation and exchanges for mutual benefits and common development. Chairman Yu Yong provided in-depth and vivid explanations on the concept and specific measures for “cutting additional costs” and “restoring the advancement of the major steel industry”. He said that it was the reverse of the market that revealed the problems of HBIS that had long been concealed during the period of sudden huge profits. Through improving internal management and taking seemingly "unreasonable" and extraordinary measures, it has helped itself out of trouble and enhanced its competitiveness. He stressed that China's economic transformation has brought precious impacts to enterprises, which should be cherished and properly utilized by enterprises.
At the meeting, personnel from the relevant departments of Minmetals and relevant business executives discussed and exchanged views on professional issues in the steel industry with Chairman Yu Yong.
Relevant personnel of HBIS including Zhang Jianzhong, Shi Shaohui, Li Yiren, Yang Guiqing, Hu Zhigang, Yan Xiujun, Wang Yaobin, Yang Chunhua, Wang Jiguang, Feng Yanmin, and Yao Yongbo; and business executives of relevant functional departments of Minmetals and Minmetals Raw Materials and Steel Business Center, were also present at the above activities.
