Inner Mongolia-based Chinese steelmaker Baotou Iron and Steel (Baogang Group) has announced that it has signed a framework agreement with Shanxi Province-based Liulin Huifeng Industry Co. to cooperate in the latter company's Wangjiahui Logistics project.
Liulin Huifeng Industry is a large private sector enterprise focused on coal mining, coal washing and production of coke. The two companies have a history of cooperation spanning 20 years.
Construction work on the Wangjiahui Logistics project commenced in May this year, while its annual shipments upon completion are expected to amount to 3 million mt of coal.
The cooperation in the logistics project, which will include the acquisition of a stake in the logistics company by Baogang, is expected to boost Baogang's self-sufficiency in raw materials and to help it reduce its costs.