Strategic Cooperation between COSCO Shipyard and Valin Xiangtan Steel

COSCO Shipyard Group signed a strategic cooperation agreement with Hunan Valin Xiangtan Iron & Steel Co., Ltd on March 12. Mr. Lin Hua, General Manager of Material Management Center ofCOSCO Shipyard Group, and Mr. Cao Zhiqiang, Deputy General Manager of Hunan Valin Steel,signed the documents on behalf of both parties. Mr. Wang Xingru, President of COSCO Shipyard Group, and Mr. Li Rong, General Manager of COSCO Guangdong Shipyard, witnessed the ceremony.

Valin Xiangtan Steel is a large Chinese steel maker. In recent years it has introduced the world's most advanced equipment and technology to develop and produce steel for marine and offshore use, which have outstanding performance and take a lead position in the domestic market. These products provide a powerful impetus for Chinese shipbuilding enterprises to enter the high-end shipbuilding and offshore equipment market.

The first supply contract between Valin Xiangtan Steel and COSCO Shipyard Group was signed in early 2007. During the following four years of cooperation, Valin Xiangtan Steel strived to improvethe steel plate varieties to meet the needs of the COSCO Shipyard Group. Whilst Valin Xiangtan Steel continues to expand the scale of their production and improve the quality of their product, COSCO Shipyard increases its procurement year by year, jumping from 2,000T in 2007 to 30,000Tin 2010; this year steel consumption will reach 150,000T according to the agreement. 

Before the signing ceremony, Mr. Wang Xingru was interviewed by Hunan TV. He pointed out that the signing of the strategic cooperation agreement will help the two sides play fully to their ownstrengths, and work together to combat market risks, jointly develop new products and markets, improve their management level and eventually achieve results of genuine mutual benefit.

Source: Cosco