OREANDA-NEWS. July 15, 2014. A grand signing ceremony for the Agreements on Strategic Cooperative Projects between MCC Group and Hebei Iron & Steel Group was convened at MCC Headquarters in Beijing.

At the ceremony, cooperative agreements for seven projects were signed by both parties.
The signing ceremony was presided over by Vice President Huang Dan, and jointly witnessed by President Guo Wenqing of MCC Group, President Zhang Zhaoxiang of MCC, Chairman Yu Yong and President Peng Zhaofeng of Hebei Iron & Steel Group.

The seven projects include: (i) energy conservation and emission reduction, cost deduction and benefit increase, as well as environment protection project of Hebei Iron & Steel Group; (ii) product upgrading and transformation work under the resettlement project of Shijiazhuang Steel Works for environment protection purpose; (iii) preparation of project application report and feasibility study report, as well as the design consulting collaboration under the resettlement project of Shijiazhuang Steel Works; (iv) strategic cooperation between Tangshan Steel Works and MCC-SFRE Heavy lndustry & Equipment Co., Ltd. (MCC-SFRE) on supply of equipment and spare parts; (v) strategic cooperation between Handan Steel Works and MCC-SFRE on supply of equipment and spare parts; (vi) steel procurement and sales cooperation; and (vii) PMC Steel Works Project in South Africa.

Prior to the signing ceremony, Guo Wenqing and Yu Yong held a discussion. They reviewed the cooperative history of both parties, looked into the promising cooperation prospect in the future, conducted in-depth exchange on further strengthening the mutual collaboration, and culminated in consensus.

On behalf of MCC Group, Guo Wenqing extended warm welcome to all the visiting leaders of Hebei Iron & Steel Group at the outset. He pointed out that, MCC Group and Hebei Iron & Steel Group have been cooperating for several decades in a wide range and developed a deep fraternal friendship.

Guo Wenqing made a briefing on the history and development of various business sectors of MCC Group. According to Guo, MCC Group has established itself into the worldwide largest contractor for metallurgical engineering and the service provider for operation of metallurgical enterprises. It is one of China’s largest producers for steel structure. MCC Group has the biggest claims in the overseas reserve amount of ferrous and nonferrous metal resources. Ramu NiCo Project in Papua New Guinea (PNG), ranking No. 3 in terms of nickel laterite ore reserve in the world, has been completed and put into operation. In addition, MCC Group is one of 16 central enterprises engaged in real estate development, which are approved by State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. Real estate development and infrastructure construction have developed into one of the core businesses of MCC Group. The Group has completed quite a few projects in overseas regions and accumulated rich experiences.

Guo mentioned that, Hebei Iron & Steel Group is the largest Chinese steel works in terms of its output capability and product varieties. Since there is a great deal of technical upgrading and transformation and construction works to be carried out, Guo expected Hebei Iron & Steel Group to undertake in-depth cooperation with the design and construction subsidiaries of MCC Group. On the other hand, MCC enjoys the largest steel structure output capability and a huge construction market in China, and is thus in great need of the products made by Hebei Iron & Steel Group. In this view, the mutual collaboration is basing upon not only the profound friendship developed by both parties, but also the actual business demands. Guo Wenqing wished that, both parties could establish effective exchange channels on talent, product, technologies and fund, supply each other's needs, complement each other's advantages and carry out all-around in-depth cooperation, so as to make greater contribution to the mutual sustainable development.

Yu Yong expressed gratitude to Guo Wenqing for the hospitality. He stated that, during the whole process of Hebei Iron & Steel Group’s growing from a small beginning into a mighty enterprise, MCC Group offered essential support. Both parties (including the subsidiaries of each other) have been working together on a mutual trust basis, going tide over the difficulties, and established profound friendship. Attaching great importance to the collaboration with MCC Group, Hebei Iron & Steel Group has made elaborate preparation and planning with a very positive attitude. Both parties are large-sized state-owned enterprises respectively in the upstream and downstream of the industrial chain, and there is no competition between each other, therefore Hebei Iron & Steel Group is full of confidence on the in-depth mutual cooperation.

Yu Yong added that, the output capability of Chinese steel industry has grown from the ten odds million tons at the beginning stage to the current 800 million tons, all the people will remember the key role played by MCC Group during this process. Along with the business development and expansion, MCC Group take a leading position in the whole world in terms of design, construction, energy, environment protection and new technical process for the steel and metallurgical industry, and is playing a key part in the implementation of the national strategy.
According to Yu Yong, MCC Group has made up deficits and got surpluses within a short period, now is stepping onto the "fast lane" of healthy development and undertaking in-depth reform and innovation. In cooperation with a large-sized central enterprise such as MCC Group, Hebei Iron & Steel Group will benefit from the following several aspects: (i) enjoying the optimized distribution of resources; (ii) mastering the development orientation of the whole industry in the future; and (iii) learning valuable experiences from MCC Group. As for Hebei Iron & Steel Group, the future development and the smooth execution of the internationalization strategy could not be effectively undertaken without the support from MCC Group. Hebei Iron & Steel Group will fully open the current market to MCC Group, and entrust MCC Group to carry out all the tasks in relation to the transformation and upgrading of the existing equipment, enhancement of energy efficiency and the improvement of the technical process. Yu Yong expected both parties to work together, complement each other's advantages, undertake historical in-depth collaboration basing upon the industrial chain on mutual benefit basis, and enhance the competitiveness of each other
.
The heads of relevant departments and subsidiaries of both parties were present at the meeting and the signing ceremony.