Valin Group signed Strategic Cooperation Agreement with China Resources Corporation

On Nov. 13, Hunan Valin Iron & Steel Group Co., Ltd and China Resources Corporation signed a strategic cooperation framework agreement in Changsha. Both parties will develop cooperation in capital operation, coking coal resources, power projects, steel supply etc.China Resources Corporation is one of the 53 key companies associated with the national economy and people s livelihood supervised by State-owned Assets Supervision and Administration Commission. It involves consumables, power supply, real estate, medicine, cement, natural gas, finance etc. Hunan Valin Group is one of the Top 10 steelmakers in China. Four years ago, Valin Group and CRC had the first cooperation. Valin Group acquired 55% equity of Jiangsu Xigang Group owned by CRC, and CRC remained its 45% equity in Xigang Group.

According to the strategic cooperation agreement, CRC will supply coking coal and coke that Valin Group needs. Meanwhile, in order to implement the central government policy requirements of energy efficient, emission reduction, development of circular economy and green economy, both parties will facilitate the cooperation of power projects on the basis of the principle of sharing complementary strengths and joint development, and combine the central and local government policies of direct power supply to large customers, to push forward the power plants owned by CRC to supply power to subsidiaries of Valin Group. In addition, both parties will cooperate in steel supply. CRC will follow the basic principle of privilege at equal conditions, to purchase high pressure and high temperature seamless tubes, plate, wire rods and bars etc.