Yudean Group headquarters in Guangzhou. The company aims to have 2.11 million tons in annual shipping capacity by 2012. [Photo/China Daily]
With power generation as its core business, Guangdong Yudean Group has extended its supply chain by diversifying into coal mining, shipping, liquefied natural gas transport, equipment manufacturing and ports.
The range of industries has a common element - they all serve its power generation business.
Yudean bought a 7.5 percent stake in the Narrabri Coal operation in Australia in 2008 as the world reeled from the recent financial crisis.
The deal will give Yudean access to 7 million tons of coal of the Narrabri project in one year in the near future.
Months later, the group spent $15 million for a 60 percent stake in the DBP coal project in Indonesia.
"The deals are win-win for both Yudean and the coal mine owners in Australia and Indonesia," said Li Zhuoxian, president of Yudean Group.
"On one hand, the deals meant capital injections in those projects amid the global economic recession - on the other, they guarantee Yudean the reliable supply of quality coal for a long time to come," he explained.
According to the president, Yudean's 1.98 billion yuan purchase of a 20 percent stake in North United Power Corp from CITIC Pacific Ltd in 2009 has enabled the company to further expand outside the province of Guangdong and laid a good foundation for its development in the coal industry.
Industry insiders note that Yudean's involvement in the shipping industry will help it control costs while guaranteeing timely coal supplies.
The company aims to have 2.11 million tons in annual shipping capacity by 2012 compared to 993,400 tons in 2009.
The company is planning to run international sea routes in the near future.
Founded with registered capital of 20 billion yuan in 2001, Guangdong Yudean Group now has more than 150 billion yuan in assets.
Its total installed capacity is now 21.19 gigawatts.
