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Baosteel using pacts tactic to weather the economic downturn
By Fu Chenghao |
January 1, 2009, Thursday
|
Print Edition
Print Edition
IN a ploy to weather the economic downturn, Baosteel Group Corp has signed several strategic cooperation pacts with logistics partners and customers.
The top Chinese mill on Tuesday signed a framework deal with Shanghai International Port (Group) Co to strengthen cooperation in various fields including sourcing, logistics, storage and distribution.
Baosteel Chairman Xu Lejiang said that while the company focuses on steel making it also pays a great deal of attention to resources and trade.
As one of China's leading port operators, SIPG has been playing a key role in facilitating Baosteel's raw material purchases and importing and exporting.
Baosteel acquired a stake in Shanghai Luojing Ore Terminal Co, a unit of SIPG, in June 2007.
Baosteel is also moving closer to its customers to get through what a company executive has called the most difficult period in its history amid slowing demand from auto and appliance makers and the construction sector.
On Sunday, Baosteel signed a new 10-year strategic deal with Haier Group Corp, China's No. 1 white-goods maker and the world's fourth largest, on top of a cooperation pact signed in 1998.
They agreed to bolster cooperation in new-product development, management and human resources, to optimize costs and boost competitiveness in their respective industries. Baosteel is Qingdao, Shandong Province-based Haier's top steel supplier.
Over the past decade, Baosteel has quickened its pace for new product development to help Haier reduce reliance on imports for steel sheets used in refrigerator making.
"Baosteel and Haier should join forces in developing more home appliances for the rural markets where potential demand is large, taking advantage of a golden opportunity offered by the government rebate scheme encouraging rural residents to buy appliances," Haier Chief Executive Officer Zhang Ruimin said.
The top Chinese mill on Tuesday signed a framework deal with Shanghai International Port (Group) Co to strengthen cooperation in various fields including sourcing, logistics, storage and distribution.
Baosteel Chairman Xu Lejiang said that while the company focuses on steel making it also pays a great deal of attention to resources and trade.
As one of China's leading port operators, SIPG has been playing a key role in facilitating Baosteel's raw material purchases and importing and exporting.
Baosteel acquired a stake in Shanghai Luojing Ore Terminal Co, a unit of SIPG, in June 2007.
Baosteel is also moving closer to its customers to get through what a company executive has called the most difficult period in its history amid slowing demand from auto and appliance makers and the construction sector.
On Sunday, Baosteel signed a new 10-year strategic deal with Haier Group Corp, China's No. 1 white-goods maker and the world's fourth largest, on top of a cooperation pact signed in 1998.
They agreed to bolster cooperation in new-product development, management and human resources, to optimize costs and boost competitiveness in their respective industries. Baosteel is Qingdao, Shandong Province-based Haier's top steel supplier.
Over the past decade, Baosteel has quickened its pace for new product development to help Haier reduce reliance on imports for steel sheets used in refrigerator making.
"Baosteel and Haier should join forces in developing more home appliances for the rural markets where potential demand is large, taking advantage of a golden opportunity offered by the government rebate scheme encouraging rural residents to buy appliances," Haier Chief Executive Officer Zhang Ruimin said.
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