make clear key cooperation areas to push steel enterprises to go out

The national development and reform commission of Hebei province have recently issued the implementation plan for steel pipe suppliers in Hebei province. The scheme is based on the advantages of Hebei iron and steel industry. Some steel pipe enterprises should play the role of demonstration, relying on the powerful key iron and steel enterprises in the province. They also actively integrated into the “area” construction, supporting the extension of industry chain through a variety of ways. These efforts can help suppliers establish overseas production bases and obtain high-quality assets abroad as well as international famous brand. The iron and steel industry in hebei province has obvious advantages and plays an important role in the whole country and the whole world. A group of enterprises have explored and taken the lead, accumulated overseas investment and management experience, and provided demonstration. A total of 8 steel projects (mergers and acquisitions) have been completed overseas, with a capacity of 6.35 million tons.

The plan puts forward the main goal of international production capacity cooperation for hollow section manufacturers in Hebei province. By the end of 2020, hebei iron and steel enterprises will strive to reach 12 million tons of overseas production capacity. The leading role of the plan is production base and it supports related industries. The plan identifies four key areas for cooperation. We should make full use of the abundant resources, great market demand and preferential policies to accelerate the construction of projects and bring the benefits of projects into full play by relying on existing projects and the basis of production cooperation of cold-formed hollow sections. Relying on the 3.5 million ton project, it focuses on developing the industries of rectangular hollow section.

At present, there is a strong demand for infrastructure development and a huge market potential. Some steel pipe manufacturers has successfully demonstrated its role in the steel plug, focusing on foreign investment through mergers and acquisitions. Governments focus on green investment to guide steel and related enterprises. We seek to cooperate with internationally renowned steel enterprises to actively develop steel production and deep processing to improve the added value of products like cold rolled round steel pipe. We will develop the friendly and cooperative relations between hebei province and other province of South Africa to promote the construction of steel projects. At the same time, combining with local development needs to meet market needs is also very important.