Hunan Province-based Chinese steel producer Valin Iron and Steel Group Co. Ltd has signed a strategic cooperation agreement with Hong Kong-based China Resources (Holdings) Co., Ltd involving comprehensive cooperation in the areas of capital, coke, electricity supply and steel.
According to the agreement, China Resources will supply coking coal and coke to Valin Iron and Steel. In accordance with the focus of national policy on recycling and on the green economy, the two parties will cooperate on electricity projects and China Resources will supply electricity to Valin Iron and Steel. They will also cooperate in the area of steel product supplies. Valin Iron and Steel will give priority to supplies of seamless pipe, heavy plate, wire rod and other steel products to China Resources.
Valin Iron and Steel and China Resources initiated their cooperation four years ago. Valin Iron and Steel acquired a 55 percent stake in Jiangsu Xigang Group, a China Resources subsidiary, with China Resources retaining a 45 percent stake in the company in question. At present, Jiangsu Xigang Group is relocating to Jinjiang industrial park in the city of Jiangyin. Jiangsu Xigang Group has an annual crude steel output capacity of 0.8 million mt and an annual finished steel production capacity of 0.85 million mt. Its main products include seamless pipe and bearing steel, which are widely used in the automobile, railway, machinery, boiler and oil industries.