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Baosteel and Haier to Continue Strategic Cooperation

01/05/2009 - Baosteel enters a new round of strategic cooperation with household appliance magnate Haier Group, the fourth-largest white goods manufacturer in the world.

Baosteel has entered a new round of strategic cooperation with household appliance magnate Haier Group, the fourth-largest white goods manufacturer in the world. The new agreement, which follows ten years of successful cooperation between the two companies, was signed during a recent celebration ceremony by Chairman Xu Lejiang of Baosteel Group Corp. and CEO Zhang Ruimin of Haier Group.
 
In accordance with their new strategic cooperation agreement, in the next 10 years, both parties will work to stabilize and continue to develop the existing business. They plan to further develop their cooperation, consummate the upstream and downstream supply chain system, jointly create product value, and strive to realize cost optimization. To support their ongoing cooperative efforts, the two companies will jointly set up an expert team to develop new steel appliance products and technologies to enhance the sustainable market competitiveness of both parties. The companies said they also intend to strengthen their cooperation in management and human resources.
 
To support the companies’ common goal to build up a world-renowned brand, Baosteel will accelerate its R&D for new products, so that Haier can apply Baosteel’s side panels and front panels for refrigerators in batches, with Baosteel becoming Haier’s largest steel supplier.
 
During the signing ceremony, Zhang Ruimin commented on the challenge of responding to the unexpected global financial storm, which has had a huge impact on Chinese steel industry and household appliance industry, saying that the companies should regard this season as a good chance to change concept, adjust thinking and optimize process.
 
Xu Lejiang commented that the age of supply shortages in the Chinese steel market is over, and that the key to responding to the crisis is to join hands to forge the competitive strategic industrial chain. He indicated that Haier's new and emerging household appliance products impose higher requirements for steel, so Baosteel’s efforts to strengthen its technology innovation and speed up R&D of new products will help to accommodate Haier's materials needs and create higher value.
 
Over the past 10 years, both parties continued to expand their scope of cooperation. For example, last year, Haier engaged Baosteel’s Chief Engineer Li Yongchun, who possesses rich experience for technical service and field work, as a steel application expert. By consolidating relevant Baosteel resources, Yongchun was able to directly participate in and provide guidance for Haier's steel purchase and application process, helping to advance standardization and rationalization for appliance steel material selection.