China’s Baowu Group inks a strategic cooperation framework agreement with Chinalco

On September 5, Baowu and Chinalco Group signed a strategic cooperation framework agreement in Beijing. The purpose of this agreement is to actively promote the optimisation and upgrading of the industrial layout structure while practising the new development concept. The agreement will enable the two sides to carry out in-depth cooperation in the areas of national strategic mineral resources security, advanced material research and development, and industrial collaboration.

The signing ceremony was attended by Baowu Party Secretary and Chairman Hu Wangming and Chinalco Group Party Secretary and Chairman Duan Xiangdong. The agreement was signed by Hou Angui, a member of the Standing Committee of the Baowu Party Committee and Deputy General Manager, and Dong Jianxiong, a member of the Party Group and Deputy General Manager of Chinalco.

Chinalco Group is a state-owned enterprise directly managed by the central government, and it is the world's largest non-ferrous metal enterprise. The company holds leading positions in the production and supply of alumina, electrolytic aluminium, fine aluminium, metal gallium, copper industry, aluminium production and sales scale, germanium metal production, and lead zinc comprehensive strength in China.

Chinalco Group focuses on four special strengths, namely scientific and technological innovation, mineral resources, high-end advanced materials, and green, low-carbon and low-cost digital intelligence, and actively performs its responsibility and mission of ensuring the security of national strategic mineral resources and the supply of non-ferrous metal key materials. The company integrates into the construction of a new development pattern and serves the national strategy.

Baowu and Chinalco have maintained a strong partnership in advanced materials such as aluminium, magnesium, and carbon, as well as industrial finance and other areas. In particular, Baowu Aluminum and Chinalco Group have worked together extensively in technical equipment, product supply, and production line collaboration, resulting in successful industrial chain complementarity. Since 2016, Chinalco Southwest Aluminum has been Baosteel's primary channel for packaging aluminium procurement. Baowu Carbon provides modified asphalt products to ChalCO Group's carbon segment and is looking to expand its collaboration in the coal chemical and aluminium carbon markets. The two companies have also engaged in financial cooperation since 2019.

In his speech, Hu Wangming emphasised that Baowu and Chinalco, both central enterprises, share the responsibility and mission of these organisations. The partnership between the two firms has tremendous potential and broad prospects. The signing of this agreement is significant and raises the strategic cooperation between the two sides to a new level. Although steel and aluminium belong to different industries, they both fall under the umbrella of metallurgy. The exchange space between the two sides in professional technology and equipment is vast and conducive to a deeper understanding of metallurgy. Furthermore, with the continuous progress of science and technology, the rapid development of the new materials industry, and the breaking down of boundaries between steel and aluminium, further promotion of high-end materials development is necessary to meet national economic development and national strategic needs.

Mr Hu emphasised the significant synergistic value of Baowu's collaboration with Chinalco, specifically in the application of materials, promoting steel and aluminium collaboration, and better-providing customers with comprehensive material solutions. Industrial chain and supply chain coordination will continue to strengthen product supply cooperation to ensure industrial chain and supply chain security. Ecosystem coordination aims to actively promote the two sides in the industrial Internet, industrial finance, real estate, and other areas of in-depth cooperation complementary advantages to achieve mutual benefit and win-win.

Duan Xiangdong added in his speech that Chinalco Group and Baowu share the mission of serving the national strategy and promoting the construction and rapid development of the state-owned economy. They have a high degree of compatibility, more entry points, and broad prospects for cooperation. The two sides will establish a working group, establish a work promotion mechanism, focus on the main responsibility and main business, maintain communication and liaison, accelerate the implementation of cooperation projects, jointly create a full chain ecosystem of supply chain ecology, industrial ecology, and digital ecology, and better play the strategic support role of central enterprises.

The exchange and signing ceremony included heads of relevant departments and subsidiaries of Baowu and Chinalco Group.