December 04, 2008

Baosteel and Sinosteel ink raw materials deal

It is reported that China's Sinosteel Group and Baosteel Group have signed a strategic cooperation agreement for supply of iron ore and other raw materials even as the country's state owned steel giants face the prospect of greater consolidation among international mining firms.

As per report China's largest steel trading firm and its largest steel maker would step up cooperation in the supply of raw materials including iron ore and chromium, as well as ferrochrome and ferronickel.

Mr Xu Lejiang chairman of Baosteel said during the signing ceremony "As we enter the 21st century, Chinese steel mills face greater pressure as international steel giants speed their expansions. We can turn from a large steel producer into a strong steel producer only by improving our technology and core competitiveness. He said that we hope this strategic agreement will improve our two firms' ability to specialize, reduce costs, improve efficiency in raw materials and increase global competitiveness."

Xinhua cited Mr Huang Tianwen president of Sinosteel as saying during the signing ceremony that the two would work together to develop resources domestically and overseas, exchange engineering technology, and bring together the strengths of a steel maker and steel industry services provider.