Baosteel and Hyundai Heavy Industries Established Strategic Partnership

Baosteel Group Chairman of the Board Xu Lejiang and Hyundai Heavy Industries Co., Ltd. (HHI) President Choi Kil-seon signed a Strategic Cooperation Agreement in Friendship Hall, Baoshan Hotel on May 13. Present at the signing ceremony were Baosteel Ltd. General Manager Fu Zhongzhe, Vice-General Managers Cui Jian, Li Yongxiang, HHI Resources Purchasing Executor Ha U-jin, HHI China Investment Co. President Mun Jong-park, etc.

Hyundai Heavy Industries is one of the largest shipbuilders with the highest comprehensive strength of the world at the moment. Its demand for shipbuilding plate increases year by year, which is estimated to reach 3.9 million ton in 2008 and 5 million ton in 2010. Baosteel first lot of export shipbuilding plate was supplied to HHI in the end of 2005. Since then the product series has been constantly developing in the direction of high strength and high added value. The product quality and service are highly evaluated by HHI.

It is specified in the Agreement that Baosteel will supply 300,000 to 500,000 ton shipbuilding plate to HHI each year, accounting for 10% of its total demand. Baosteel will widen further technical exchange and cooperation with HHI in top end shipbuilding plate including TMCP to establish a supply-demand operation mode covering supply, application and feedback to improve constantly the product quality; A technical expert group will be formed by experts from technical, production, design and application departments to explore a joint development mode for steel products technology to form intellectual property shared by both parties; At the same time, both parties will expand their cooperation in such fields as special steel for ship engine, electric steel for electric & electronics, high strength structural steel for engineering machinery, pipeline steel for offshore platform, etc.

According to the Agreement, both parties will establish a regular high-level visit exchange mechanism to define the key fields and working objectives of the strategic cooperation and to evaluate the effects of the cooperation; Formal meetings between relevant departments will be held to solve and coordinate the specific problems in the strategic cooperation; The strategic cooperation working groups and technical experts will held meeting regularly to exchange information, to make working plan, and to consult details for implementation.