OREANDA-NEWS. July 29, 2014. President Guo Wenqing of MCC Group conducted a visit to the headquarters of China Export & Credit Insurance Corporation (SINOSURE) in Beijing and met with President Luo Xi of SINOSURE.

Both parties held in-depth discussion on the ways for further strengthening collaboration and entered into an agreement. At the conclusion, the leaders of both parties witnessed the signing of Strategic Cooperative Agreement.

President Guo made a briefing on the history, the business sectors and the development situation of MCC Group. According to Guo, MCC Group has established itself into the worldwide largest contractor for metallurgical engineering and the service provider for upgrading and transformation of metallurgical engineering technologies, as well as China’s largest producer of steel structure. MCC Group has the biggest claims in the overseas reserve amount of ferrous and nonferrous metal resources, possessing several mines such as Aynak Copper Mine in Afghanistan, the second largest copper mine of the world. Ramu NiCo Project in Papua New Guinea (PNG), ranking No. 3 in terms of nickel laterite ore reserve in the world, has been completed and put into operation. In addition, MCC Group is one of 16 central enterprises engaged in real estate development, which are approved by State-owned Assets Supervision and Administration Commission (SASAC) of the State Council.

Real estate development and infrastructure construction have developed into one of the core businesses of MCC Group.

Guo added that, in addition to the mining resources and metallurgical engineering businesses, the Group has successfully invested and developed quite a few property, highway and urban infrastructure projects in overseas region, for instance: (i) five real estate projects have been successfully developed in Singapore; and (ii) the Expressway of Bandaranaike International Airport in Colombo (“Expressway of Colombo International Airport”), the capital of Sri Lanka, which is called the No. 1 Expressway at the National Gateway, has been completed by MCC Group on an EPC basis. All these works have been placed with high premium by the employers and the relevant organizations of the project countries.

Guo stated that, now MCC Group is intensifying efforts in respect of the enterprise environment, the market, the development platform, the projects and the client base.
Guo Wenqing pointed out that, SINOSURE is the only one financial institute dealing with the policy-related export credit insurance business in China. Since its establishment, SINOSURE has offered essential support to the Chinese enterprises in exploring overseas market by providing the policy-related export credit insurance in accordance with the national policies on foreign affairs, trading business, industries, finance and financing business.

On this ground, SINOSURE has made outstanding contribution to the going-abroad Chinese enterprises. In recent years, MCC Group redoubled efforts in exploration of overseas market. In this view, it is a must for MCC Group to cooperate with SINOSURE so as to avoid risk, enhance the competitiveness, expand the financing channel and improve the fund management competence, which is in compliance with the guiding principles of MCC Group in the fields of risk controlling and focusing on client base establishment. All the businesses of MCC Group will be opened to SINOSURE, and all the insurance business for overseas projects (if there are any requirements on insurance) will be undertaken by SINOSURE. Guo expected both parties to work closely on communication and view exchanges, seek for various methods for cooperation, expand the breadth and depth of the collaboration, and make greater contribution to the implementation of global presence strategy of the Chinese enterprises.

Luo Xi extended warm welcome to Chairman Guo Wenqing and his delegation members. He emphasized that, SINOSURE and MCC Group have built up a perfect partnership and a tight connection, and the total value of the mutual cooperation is up to USD3 billion yuan.
Luo Xi made a briefing on SINOSURE and put forward quite a few valuable recommendations of the global presence strategy implementation of the Chinese enterprises. Luo stated that, all the central enterprises are facing the same issues during the implementation of their global presence strategy, namely some political and/or policy risk are hard to be forecasted and mastered, even though all the economic and/or commercial risks are controllable and there is a certain amount of profit to be achieved projects. In this case, SINOSURE will make full play of its roll and provide guarantee for avoiding the risks.

Luo Xi pointed out that, MCC Group is one of the major forces of Chinese metallurgical industry, and playing a key role in the metallurgical equipment manufacturing, engineering contracting and mining resources development. As one of the key central enterprises, MCC Group is taking fast steps towards the execution of its global presence strategy, and is proved to be of great growth potential and promising development prospect. Luo added that, SINOSURE is willing to conduct in-depth mutual collaboration, make a full play of its policy function in respect of credit and insurance, offer the insurance support to the overseas engineering projects and labor-service export of MCC Group, spare no efforts in promoting the business growth of MCC Group in overseas regions, and assist MCC Group in further enhancement of its international competitiveness.

After the meeting, both parties convened a signing ceremony for the Strategic Cooperative Agreement.

Relevant heads and staff of both parties were present at the meeting and the signing ceremony.