On November 6, 2019, at the headquarters of China Baowu Group in Shanghai, Shougang Group Co., Ltd. (hereinafter referred to as Shougang Group) and China Baowu Steel Group Corporation Limited (hereinafter referred to as China Baowu) signed a strategic cooperation agreement.

Mr. Zhang Gongyan, Secretary of the Party Committee, Chairman and General Manager of Shougang Group, Mr. Zhao Minge, member of the Standing Committee and Deputy General Manager of the Party Committee, Mr. Zhao Tianyang, Deputy General Manager; Mr. Chen Derong, Secretary of the Party Committee and Chairman of China Baowu, and Mr. Zhang Jingang, Deputy General Manager attended the signing ceremony. Mr. Zhao Minge and Mr. Zhang Jingang signed the strategic cooperation agreement on behalf of both ends.

This strategic cooperation marks that in view of deepening structural reform at the supply end, the two major iron and steel groups jointly drive the high-quality development of the iron and steel industry through strong alliance.

Based on the strategic guidance of accelerating the transformation and upgrading of state-owned enterprises and accelerating innovation driven development, the two parties will carry out in-depth cooperation in the fields of property financing, iron and steel and related services, intelligent manufacturing, green manufacturing, new material research and development, urban services, and jointly promote complementary advantages and common development at a higher level and in a wider field.

In terms of property financing, while upholding each development orientation, the two parties shall actively promote cooperation in the field of industrial finance, and enhance their strategic cooperation relationship through capital cooperation in various ways such as cross shareholding and joint investment.

In terms of iron and steel and related service industries, focusing on the direction and path of transformation and upgrading of iron and steel enterprises in the new economic environment, the two sides shall strengthen cooperation in the iron and steel industry chain, reinforcing technical cooperation, jointly carry out research and development of new products, explore the mechanism of cooperation and development of cutting-edge products, collectively tackle technical problems, and create a high-quality iron and steel ecosystem.

In terms of intelligent manufacturing and green manufacturing, focusing on the industrial upgrading, the two sides shall jointly explore and promote the overall solution of intelligent manufacturing of industrial Internet, cloud computing, big data, artificial intelligence and other information technologies in the construction of iron and steel informatization and digital transformation, so as to promote the high-efficiency and high-quality development of the iron and steel industry.

In terms of new material research and development and industrial application, the two sides shall strengthen exchanges and cooperation, explore innovative research and development mode and business mode together, and provide comprehensive material solutions for the construction of manufacturing power.

In terms of urban service industry, the two sides shall seize the opportunity of transformation and development of steel base in each city, explore new industries of supporting cities, cooperate and innovate the new mode of "park-city" coordinated development, and help each other to become China's leading comprehensive development, operation and supporting service provider of industrial parks.

In terms of the transformation and management of state-owned enterprises, the two sides strengthen the exchange and cooperation in the reform of mixed ownership, the reform of system and mechanism, the construction of state-owned capital investment companies, and the production, technology, marketing, management and personnel training of enterprises.

Both conceded that, “Standing at the new starting point of the development of the times, we should continue to deepen the structural reform of the supply end and the reform of state-owned enterprises, taking an active role in the industrial transformation and upgrading, and in the development of advanced manufacturing industry, leading the demonstration, and striving to realize the national dream of a strong iron and steel.”