OREANDA-NEWS. On October 22nd, MCC and Hebei Iron and Steel Group (HBIS) signed a strategic cooperation agreement in the HQ of MCC. By the agreement, the two sides aim to co-share their resources, supplement their respective advantages and consolidate and improve their leading positions in their own industries so as to bring about mutual development ultimately. Signing of the strategic cooperation agreement symbolizes a new starting point and chapter on the basis of their long term friendship. 
The signing ceremony was presided over by Huang Dan, the vice president of MCC Group. Zhang Zhaoxiang, the president of MCC Group and Yu Yong, the general manager of Hebei Iron and Steel Group, inked the agreement on behalf of the two sides. Guo Wenqing, the general manager of MCC Group, and Wang Yifang, the chairman of BOD of Hebei Iron and Steel Group, delivered the speeches in the ceremony.

In his speech, on behalf of MCC Group, Mr. Guo Wenqing firstly expressed thanks to Mr. Wang Yifang and Mr. Yu Yong as well as the leaders and friends attending the signing ceremony.

Mr. Guo noted that, since its establishment in 2008, Hebei Iron and Steel Group has developed into an extra large iron and steel conglomerate that is leading in China and among the first class of similar enterprises in the world in the iron and steel industry. It engages in four other business sectors consisting of iron and steel, equipment manufacturing, financial service and modern logistics, with the iron and steel as its main business. Its products are widely applied in the national key projects and railway and highway transportation projects and it has made prominent contribution to the economic building of China.

Mr. Guo also said that MCC Group and HBIS are both the extra large state owned enterprises, whose businesses belong to the front and end of the iron and steel industry chain, respectively, and the two sides have kept long term cooperation. The subsidiaries of MCC Group has carried out planning, design, construction and technical services for a number of key projects of HBIS’ enterprises and procure large quantities of products of HBIS. The two sides have established deep relationship and friendship over the long term reciprocal cooperation.
Mr. Guo pointed out that the cooperation between the two sides as the strategic supplier for each other on the basis of their own overall advantages is a response to the call of “encourage the state owned enterprises to make cooperation by focusing on the principal business and achieve a win-win result and common development” of SASAC, conforms to the development strategy of “A hundred state owned emprises enter into Hebei Province for business” defined by the Hebei government and, more importantly, reflects the urgent need for further development of the two sides. MCC Group, as China’s large metallurgical equipment manufacturing enterprise and the largest steel structure manufacturer, has the productive capacity of 2.2 million tons of steel structures per year and hence demands large quantities of steel. And HBIS enjoys the advantages of iron and steel products and output. MCC Group has developed over 100 key techniques and has the “cleaner production technology center for the metallurgical industry” and the “engineering and technological research center for energy saving and emission reduction in the ferrous metallurgical industry of Beijing”. Therefore, the two sides’ strategic cooperation in the aspects of engineering construction, environmental protection and management in the iron and steel industry and procurement of large quantities of materials and important general purpose equipment will facilitate co-sharing of resources and giving full play to their own complementary advantages, and play a significant role in reducing their own costs, improving their efficiency, consolidating and enhancing their leading positions in their own industries and achieving mutual development. 

Mr. Guo emphasized that signing of the strategic cooperation agreement between MCC Group and HBIS signifies a new starting point and chapter on the basis of the existing long term friendship. We will implement all relevant work and lay a solid foundation for further cooperation so that the two sides will join hands to achieve a win-win result by close cooperation.

Mr. Wang Yifang said in his speech that it was a great pleasure to witness the ceremonious moment of beginning of all-round cooperation between the two sides.

Mr. Wang noted that, as the iron and steel enterprise boasting of the highest output and the most comprehensive types and sizes of iron and steel products, HBIS has won full support of the upstream and downstream enterprises of this industry, including MCC Group. Over the fives since its establishment, HBIS has substantially lifted its comprehensive edges and international influence by deepening substantive integration and accelerating structural adjustment, transformation and upgrading. HBIS is able to produce 50 million tons of high quality iron and steel per year, which can be applied in manufacturing of the world-class equipment. With the total assets amounting to RMB318.2 billion, HBIS has been among the top 500 companies in the world for five consecutive years, moving up to the current 269 from the original 375.

Mr. Wang pointed out that the development of HBIS must rely on the close cooperation with all customers, especially the strategic partners. In 2013, HBIS has 44 strategic cooperation customers in terms of iron and steel sales and its contractual sales volume amounts to 10.42 million tons, accounting for 28.69% of the total sales of iron and steel for the group. The strategic cooperation has improved the group’s capability to face the market risks and market share. As a result, HBIS’ products have been applied in some landmark projects with the international influence, such as Hong Kong-Zhuhai-Macau Bridge and China Zun, a supertall skyscraper under construction in Beijing, and the brand influence of HBIS has been further reinforced.

Mr. Wang said that, as the world largest metallurgical engineering contractor and metallurgical engineering technological service supplier, MCC Group has the complete industry chain for ferrous and non-ferrous metallurgical engineering. Serving as the pioneer and builder of China’s metallurgical industry, MCC Group has undertaken the work of planning, prospecting, design and construction of nearly all major production facilities of the large and medium-sized iron and steel enterprises.

Mr. Wang added that MCC Group and HBIS are both among the top 500 companies in the world and are both the extra large state owned enterprise group in the metallurgical or iron and steel industries. The two groups have long term cooperation and our relevance and complementary effect are high; we can adopt the cooperative management mode featuring mutual clients by relying on our own advantages and make cooperation in the aspects of engineering construction, environmental protection and management and procurement of large quantities of material and general purpose equipment. This is of much significance for the two sides to reduce costs, improve efficiency and enhance the market competitiveness. Today marks the official commencement of the new journey for all-round strategic cooperation between HBIS and MCC Group. 

Mr. Wang is fully convinced that the two sides will definitely achievement abundant and excellent results on the way of honest, friendly, reciprocal and win-win cooperation through joint efforts.

Before the signing ceremony, Guo Wenqing and Wang Yifang held talks and exchanged in-depth views on further cooperation.

Mr. Guo expressed warm welcome to the visits of the guests and noted that MCC and HBIS enjoyed a solid cooperation foundation. On the one hand, MCC has tremendous markets that demand the products of HBIS ; on the other hand, a number of enterprises of HBIS are encountered with massive tasks of technological transformation and upgrading. Therefore, HBIS can make further cooperation with the designing enterprises of MCC.

Mr. Guo said that MCC has modified its strategic positioning based on the requirements of the iron and steel capacity planning of China and proposed the great vision and development goal of “focus on the main business and build a better MCC ”. MCC has positioned its role as the world largest contractor for metallurgical engineering construction and operation service provider for metallurgical enterprise. MCC should take the responsibilities to enhance the technological level of the iron and steel industry of China.

Mr. Guo added that, with as many as 14 top level designing institutes, MCC has designed and constructed 90% of the large iron and steel enterprises in China and hence the levels of design and construction of MCC represents the technological level of China’s iron and steel industry. However, the technological level of China’s iron and steel industry has not been substantially improved, as is much related to the fact that MCC has taken a roundabout course. So MCC believes it should be blamed for it and has required its design companies to fully withdraw from the real and estate industry and to focus their energy on R&D and technological innovation so that MCC will bring China’s metallurgical industry to a higher level with MCC’s spearheading core technology and continuous innovative ability. While encouraging its construction enterprises to prevent and control risks, MCC requires them to strengthen their advantages in the traditional major metallurgical industry, speed up the transformation process and increase the enterprise scale. 

Wang Yifang expressed thanks to Guo Wenqing for MCC’s warm reception as well as long term support to HBIS. Mr. Wang noted that cooperation between HBIS and MCC as well as the latter’s subsidiaries has a long history and that nearly all design projects or large equipment installation projects of HBIS and its subsidiaries were completed by MCC, with the mines of HBIS designed by MCC as well. Therefore, the two sides and their people have established deep friendship. This strategic cooperation agreement will further develop the two sides’ cooperative relationship, Mr. Want added.