Baosteel, CNOOC Signed Long-term Strategic Cooperative Agreement

Wednesday, Nov 18, 2009

Baoshan Iron & Steel Co., Ltd. signed long-term strategic cooperative agreement with CNOOC (China National Offshore Oil Corporation), upgrading bilateral steel product demand-supply relationship to strategic cooperative partnership. It was one move forward with mutual benefits in promoting stable development and deepening cooperation under present complicated market situation. Baosteel vice general manager, Tubular Products Business Unit general manager Jiang Licheng and member of CPC CNOOC leading group Wu Guangqi attended the signing ceremony. Baosteel assistant to general manager Zhou Shichun, CNOOC Purchasing Management Department general manager Lin Guohai signed on the agreement on behalf of both sides. 

CNOOC, largest domestic offshore oil-field exploration and exploitation manufacturer, was established in 1982. Company has long history of cooperation with Baosteel, in areas of individual project over ten years ago, steel products purchasing in 2004 and oil sleeve pipes supply in 2008, which collectively made localized production of UOE and HFW oil gas pipes possible. Present products of Baosteel have been extensively applied by CNOOC.

Through friendly negotiation, both sides decided to establish long-term strategic cooperative partner relationship on the basis of ��equality and trust, mutual benefits, sharing risks and interests, seeking common development�� to adapt to trends of global economic integration and increasingly severe market competition, complementing for each other and evade market risks.

Comprehensive strategic cooperation will be facilitated in product service, technology research and new product development, through setting up multilevel information sharing, communication mechanism compatible with strategic cooperative partnership to reduce risks in manufacture and operation to the greatest extent; strengthening collaboration in market research to share research results; organizing joint technical specialists group, working on technical diagnose of in service steel materials of CNOOC and new products R&D needed for manufacturing construction.  

Source: Baosteel