SMM News: Fortescue Metals Group Ltd., the world's fourth largest iron ore producer, has expanded its sales channels by setting up a subsidiary in China to sell small quantities of products in local currency.
The Perth-based manufacturer said in a statement that it completed its first renminbi transaction last month. The company also reported quarterly shipments to an all-time high.
Iron ore prices have risen this year due to supply disruptions and other factors, but have fallen back in recent weeks. Fortescue's efforts bode well in May, when Greg Lilleyman, chief operating officer, said in an interview that the company had been exploring small batches of business in renminbi.
"the main idea is to provide another sales channel for China," Lilleyman said on a conference call, estimating that the new subsidiary could handle 12 million to 15 million tons a year. In fiscal year 2019, the company shipped a total of 167.7 million tons.
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