China’s largest steel producer Baowu Steel Group has signed a series of strategic agreements with Brazilian miner Vale to explore partnerships in various areas.
Under the agreements, Baowu and Vale will cooperate in steelmaking, base metals, technology research and development, as well as logistics and supply chain to effectively improve the shipment of iron ore. The two companies also agreed to look into potential joint venture opportunities.
Chen Derong, chairman of Baowu, said the company’s full range of steel products will provide strong support for Vale’s business development around the world and Baowu will share its logistics resources to help its partner expand in China quickly and cost-effectively.
In the past few years, Vale signed a series of COA deals with major Chinese and South Korean shipping companies, leading to a slew of valemaxes being ordered at shipyards in the two countries.