Valin Group signed Strategic Cooperation Framework Agreement with SINOTRANS

On May 7, Hunan Valin Iron & Steel Group and SINOTRANS signed a strategic cooperation framework agreement in Changsha. According to the agreement, the two sides will develop deep cooperation in marine logistic transport, construction and operation of ports and wharves, steel purchasing and marketing, modern logistics service and other fields. Chen Zhaoxiong, vice governor of HunanProvince, and Liu Xihan, secretary of the Party Committee of the SINOTRANS, attended the signing ceremony.

SINOTRANS was established with the merging of China National Foreign Trade Transportation (Group) Corporation ( SINOTRANS ) and China Changjiang National Shipping (Group) Corporation ( CSC ). It is China s largest inland shipping enterprise and the only key state-owned enterprise that can achieve complete logistic service for oceanic, costal and inland shipping. It is also a domestic large-scale shipbuilding enterprise in great demand of steel.

According to the development strategy, Hunan Valin is expected to have an annual capacity of 30 million tons of steel in two years. Therefore, the imported iron ore will also exceed 30 million tons, with a corresponding increase of its steel s export volume. However, Hunan locates in central China with poor logistics conditions, the bulk raw materials mainly rely on railway transportation, which remains a bottleneck hampering the development of Valin.

Both parties will build up a brand new platform for the cooperation and development of logistics resources in order to realize complementation in resource advantages.