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Yongxing Jiuli two leaders join hands to build Special stainless Steel Strategic Cooperation Alliance
Jun 11,2019 10:27CST
The content below was translated by Tencent automatically for reference.

Yongxing Jiuli two leaders join hands to build Special stainless Steel Strategic Cooperation Alliance

On the evening of June 10th, Yongxing Special stainless Steel Co., Ltd. (hereinafter referred to as "Yongxing Special Steel (002756)") and Zhejiang Jiuli Special material (002318), the largest manufacturer of stainless steel and special alloy pipes for industrial use in China. ) Technology Co., Ltd. (hereinafter referred to as "Jiuli Special Materials") has issued a notice saying that Sign a strategic cooperation framework agreement with each other, and the two sides will carry out strategic cooperation at the business and capital market levels.

Yongxing Special Steel is mainly engaged in the research and development, production and sales of high quality stainless steel rod and wire rod and special alloy materials. After years of accumulation, Yongxing Special Steel stainless steel rod and wire rod domestic market share for a long time stable second, duplex stainless steel rod and wire rod output ranked first in the country. Jiuli special products cover nearly 100 varieties of industrial stainless steel tubes. Since obtaining the manufacturing license for nuclear-grade products in 2009, Jiuli special products have extensively carried out research and development and manufacturing of nuclear-grade products. The situation of long-term dependence on import of materials, the key core components of nuclear power equipment, has been solved. After the signing of this agreement, the two sides will make use of their own resources to jointly promote the further penetration of high-end special stainless steel materials in the field of high-end applications.

In recent years, the high-end equipment manufacturing industry has developed rapidly, and the demand for high-end stainless steel is increasing day by day. The 13th five-year Plan for the Development of Strategic emerging Industries clearly states that it is necessary to "strive to achieve an output value of more than 12 trillion in the high-end equipment and new materials industry by 2020," and "strive to bring a number of new material varieties into the global supply chain by 2020. The self-sufficiency rate of major key materials has reached more than 70%, initially realizing the strategic transformation of our country from a big material country to a strong material country. "

It is understood that Yongxing Special Steel and Jiuli Special Materials this time will reach cooperation on the supply chain and key technologies. The two sides pledged to carry out more in-depth cooperation in supply and acquisition, and at the same time, the two sides will carry out key technical cooperation to jointly promote the research, development, production and standard formulation of "specialized, refined, special, new" products and other industrial products. In the high-end special stainless steel, duplex stainless steel and other fields to increase market share, continue to meet customer needs, to achieve upstream and downstream industrial chain one-stop service, We will further promote the application of our products in oil and gas extraction, refining, nuclear power, thermal power and other high-end equipment manufacturing fields. In terms of capital cooperation, without changing the actual controller of Yongxing Special Steel, Jiuli Special material intends to purchase about 10% to 20% of the total share capital of Yongxing Special Steel with no more than 600 million yuan of its own capital.

Industry analysts said that the development of stainless steel in China started relatively late, the threshold of technology and capital is high, the degree of industry concentration is relatively high, and the competition pattern of head enterprises is relatively stable. Jiuliti's shareholding of Yongxing Special Steel will help the two sides to reach a community of interests, which will help both sides break through the original industry position to overtake the curve in the industry, and at the same time open up the industrial chain to form an upper and lower reaches bargaining advantage. More keen grasp of product research and development and industry development trends.

Stainless steel
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