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Sinosteel Corporation, one of the nation's largest steel traders, is stepping up its overseas expansion through co-operation with local companies.
The company signed agreements last week to consolidate strategic partnerships with Japan-based Marubeni Corp, Germany-based ThyssenKrupp RST and Elkem ASA from Norway.
"One of our most important strategies is overseas expansion," said Huang Tianwen, president of Sinosteel.
In fact, the State-owned company has had a business relationship with these three foreign firms for over a decade, mainly focused on the coke trade.
But the company is hoping to broaden this co-operation through the trading of iron ore, coal, steel, transportation as well as outbound investment. "The long-term co-operation with the three companies provides us with shortcuts to the markets in Europe and Japan," Huang said, adding that the companies will soon begin negotiations on how to improve trade and investment.
Sinosteel's president said that all branches of his firm would benefit from larger trade channels and long-term co-operation with its foreign partners.
For example, contractors under Sinosteel will be able to gain access to the advanced technology and equipment of the company's foreign counterparts.
The foreign partners are also eager to establish a better relationship with the Chinese firm as it gives them greater access to the domestic market.
"We found various areas in which to co-operate with Sinosteel as a number of our businesses overlap," said Kai-Norman Knoetsch, general manager of Germany-based ThyssenKrupp MinEnergy.
ThyssenKrupp is one of the largest integrative industrial groups in Germany, and boasts a 146-year history.
It has over 40 subordinate companies and representative offices in China, engaged in the manufacturing of steel and elevators, as well as trade and services support.
Marubeni's president Tadatsugu Nakajima echoed Knoetsch by saying his company would strengthen its relationship with Sinosteel, particularly in the iron ore, transportation and machinery fields.
"Sinosteel is our largest supplier of coke in China and one of our most reliable suppliers in the world," he said.
(China Daily March 11, 2005)
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