China Metallurgical Group and Formosa Plastics Co., Ltd. signed the letter of intent for cooperation in iron and steel projects

On the morning of October 10, China Metallurgical Group and Formosa Plastics Hejing Iron & Steel Industrial Co., Ltd. (referred to as “Formosa Plastics Hejing Steel”) held a signing ceremony at the headquarters of China Metallurgical Group. According to the letter of intent, China Metallurgy CCID Group, China Metallurgy Changtian, and China National Metallurgical Coking Group, which are under the China Metallurgical Group, will receive Formosa Plastics Hejing Steel blast furnace, furnace EPC, sintering design, main equipment and training, and coke oven EPS project respectively.

Formosa Plastics He Jinggang Chairman Lin Xinyi, General Manager Yang Hongzhi and Senior Deputy General Manager Yang Wenyu; Vice Chairman of China Metallurgical Group Shen Caiting, President of China Metallurgical Industry; Xiao Xuewen, Chairman of China Metallurgical Group; Yi Shuguang, Chairman of China Metallurgical Changtian The contract signing ceremony was attended by Yu Zhendong, Chairman of the Board of Directors of China National Metallurgical Co., Ltd., as well as related project managers from the China Overseas Metal Industry Engineering Management Department and the three subsidiaries. Lin Xinyi and Shen Heting held talks before the signing of the agreement, conducted friendly and frank exchanges, and addressed the ceremony. Huang Dan, Vice President of China National Metallurgy, presided over the signing ceremony. Yang Wenzhen introduced the project situation. Yang Hongzhi signed the letter of intent with Xiao Xuewen, Yi Shuguang and Yu Zhendong respectively.

Formosa Hejing Steel is a large-scale iron and steel conglomerate, which is planned to be completed in four phases in two phases. The final scale will be about 21.85 million tons of billets annually, of which the first phase of annual production will be 7.07 million tons, and the second step will be 1060. 10,000 tons, the first phase is scheduled to be put into production in 2015, including two 4350 cubic meter blast furnaces, two 500 square meter sintering machines, four 60-hole 7-meter coke ovens, three 300-ton converters, and two twin-flow slab casters , 1 8 flow billet caster, 1 set of 2050 hot rolled strip unit, 1 set of bloom blanking unit, 1 set of high speed wire rod mill and 1 set of wire rod composite mill. The final product is mainly for the high-end market in Southeast Asia.

From the perspective of the development law of the world steel industry, the Association of Southeast Asian Nations (hereinafter referred to as the Association of Southeast Asian Nations) is the region with the most prospects for the development of the Pacific Rim steel industry in the future. According to market research, the supply of steel products in the region is in short supply, and the contradiction will be further increased in the future. Judging from the total amount, the current iron and steel industry in Vietnam and the entire ASEAN region is developing slowly, which cannot meet the needs of regional steel and cannot meet the requirements of regional economic growth. In 2010, two-thirds of crude steel demand in Vietnam and Asean regions was met by imports. The continued entry of steel products from outside the region into the market is a trend in the future. Utilizing Vietnam's favorable geographical location, traffic conditions, and preferential investment policies to build iron and steel conglomerates to meet the market demand of Asean in the near future is the best investment option, and it is of great strategic importance.

At present, China's iron and steel industry is in a period of adjustment. China Metallurgical Group adheres to the overall thinking of “effective transformation, scientific development, and strengthening and excellence” and plays a leading role in the main business sector of steel projects, and intensifies market development efforts. In addition to participating in the two key projects of Baosteel Zhanjiang and Wugang Fangchenggang, large-scale integrated steel plant investment projects with economies of scale are eyeing future international markets with potential for development. The Formosa Plastics Hejing Iron and Steel Project is another major project that MCC has made in exploring overseas markets. It is of far-reaching significance for MCC to give full play to its engineering and technological advantages, advance overseas strategies, improve project management and enhance the influence of overseas markets.

Shen Heting and Lin Xinyi said in their exchanges that the two sides of MCC and Formosa Plastics Group will actively cooperate with each other, concentrate on superior resources, achieve the various objectives of the project, and strive to build the Hejing project into a benchmark in the world steel project. The two sides will also use this as a starting point to lay a solid foundation for further cooperation and development in a deeper and broader area.