On May 28th, cooperation roundtable of key enterprises of vehicle agricultural equipments, cum "2 + N" Strategic Alliance Signing Ceremony organized by Rizhao Steel and coorganized by SUMEC was held at the Center Conference Room of Rizhao Steel. Industry leaders such as Leng Qiang, from Zhucheng Economy and Information Bureau, Jiang Weidong, president of Wuzheng Group, Shi Lei, deputy general manager of SUMEC Group Technology and Trade Company, Zang Chuanyou, vice president of Foton Lovol, JingBin, procurement minister from Shandong Shifeng Group and etc from Zhucheng, Liaocheng, Rizhao Wulian were invited to attend the conference. Yan Xiuxun, secretary of the party committee of Rizhao Steel, Liu Yongsheng, general manager of Jing Hua Rizhao Steel Group International Trade Company, Wu Jiahua, deputy general manager of sale business department, Liu Hongzhi, assistant deputy manager, Dong Jianfeng, assistant deputy manager, Xiahou Hongbo, assistant deputy manager, and commissioner Cui Enhai attended the conference.
“Rizhao Steel builds a multi-win platform for strategic cooperation, making our relationship stronger through deliberating with cooperation partners. We are willing to listen to valuable advice from our friends in order to make best use of the advantages and bypass the disadvantages, improve the weakness, make progress and fulfill glorious achievements.” ——Yan Xiuxun, secretary of the party committee of Rizhao Steel stated.
At 9:30 A.M., leaders and guests were seated after their visiting company’s sandbox and exhibition hall. Yan Xiuxun, secretary of the party committee of Rizhao Steel firstly expressed warm welcome and heartfelt thanks to leaders and guests on behalf of Du Shuanghua, president of Rizhao Steel. Then he pointed out in the conference speech: In 2015, Rizhao Steel have fulfilled reform and innovation through benchmarking advanced mode of management and operation of taiwan’s China Steel and introducing world advanced ESP(Endless Strip Production) Line. These significant decisions and changes were made to provide customers with the highest cost-effective new products and more satisfying value-added service. We hope to deliberate with all partners to construct a multi-win strategic cooperation platform.
In “2+N” strategy, “2” refers to Rizhao Steel, serving as a resource side, and SUMEC, acting as a service side. “N” refers to private enterprises, small and medium manufacturing enterprises, our service target. We will always uphold the concept of "creating value for customers, increasing customers’ loyalty, improving customers’ experience and providing customers with best service." Together with Rizhao Steel, we will build a cooperative, mutually beneficiary, and win-win platform for our customers.-- Shi Lei, deputy general manager of SUMEC Group Technology and Trade Company.
Liu Yongsheng, general manager of Jing Hua Rizhao Steel Group International Trade Company and Shi Lei, deputy general manager of SUMEC Group Technology and Trade Company respectively introduced “2+N”strategic cooperation mode systematically. “2+N” refers to that resource side and funding side cooperate with each other to provide a full range of services for the downstream key enterprises, and build a strategic platform of strategic cooperation through this mode. As a resource side, Rizhao Steel Group, provides cost-effective and direct supply source, as well as point to point service with partners. As a funding side, SUMEC Group provides an effective and stable source of funds for partners to reduce the financial difficulties of partners and procurement costs through close coordination with Rizhao Steel. The strategic alliance of customers within this framework provides a stable market share for Rizhao Steel. All participants make full use of the respective advantage in their field through such a platform. Subsequently, Liu Hongzhi, assistant deputy manager of the company's technology department introduced the company's ESP new products applied to the field of vehicle steel to the guests in detail. The production line is the world's second endless rolling thin strip production line. Its products are mainly applied to the field of light truck panels, floor, wheels, spokes, brake pads, safety buckle and automotive structural parts. Because of pure melton steel，it is favorable for products to carry out the processing technology of rolling, stamping, bending. Products possess good welding performance and high accuracy in dimension. The precision of thickness can be controlled within ± 0.02mm. Products are processed into cold forming plate through pickling and great pressure, with flatness and surface roughness reaching to the appearance level of cold rolled sheet. The participating companies looked forward to the following substantive cooperation after their listening to the trial outcome report of ESP new products used in the field of vehicle steel delivered by Liu Hongzhi, assistant deputy manager.
“Zhucheng government will make efforts to promote the integration and exchange between key enterprises of vehicle agricultural equipments and Rizhao Steel in all fields, provide service without distance and barriers, and promote cooperation to higher levels and broader areas.”-- Leng Qiang from Zhucheng Economic and Information Bureau.
During the speech of special guests, Leng Qiang, from Zhucheng Economy and Information Bureau, expressed warm congratulations on the complete success of this roundtable. Director Leng indicated that steel is an indispensable and key production factor of industrial development. Rizhao Steel is the province's largest private steel enterprise of ten-million-ton level. In Zhucheng, the automobile industry and equipment manufacturing industry accounted for 46% of the total amount of urban industrial economy, and had a strong demand for steel. According to statistics, the industry in Zhucheng consumed 2 million tons of steel, covering hot-rolled coil, cold-rolled sheet, hot-rolled seamless pipe, wire rod steel and many other categories. The demand for steel would increase after the construction of such sophisticated and high-quality projects as advanced agricultural machine and tools of Foton Lovol、300 thousand tons of steel tyre cords of DAYE. It is appropriate to hold this roundtable because it is significant to deepen mutual understanding, enhance friendship, and bridge between supply and demand between companies. He hoped to deepen the integration and exchange between enterprises in Zhucheng, explore to maximize the value of the steel supply chain, and fulfill cooperation, mutual benefit and win-win through the roundtable. Zhucheng government will make efforts to promote the integration and exchange between key enterprises of vehicle agricultural equipments and Rizhao Steel in all fields, provide service without distance and barriers, and promote cooperation to higher levels and broader areas.
“In the current economic environment, strengthening cooperation will realize mutual benefit and decentralized management will eventually be eliminated. It is particularly important for us to deliberate the “2 + N” strategic cooperation mode and seek new development opportunity in the future.”——Jiang Weidong, president of Wuzheng Group.
As the representative of key enterprises of vehicle agricultural equipments, Jiang Weidong, president of Wuzheng Group finally addressed the cooperation roundtable. He firstly expressed his heartfelt gratitude to Rizhao Steel for its warm invitation, and then he indicated that at present all industries were confronted with problems of upgradation and light weight of products, and that how to achieve light weight material was a practical problem ahead of us that needed to solve in no time. In his view, Rizhao Steel Group possessed favorable conditions and advantages to cooperate with companies involved: Firstly, Rizhao Steel possesses unique geographical advantage and convenient traffic conditions, which ensures delivery period and reduces company stocks. Secondly, Rizhao Steel Group is abundant with a variety of products, launches new products continuously and meets the needs of new products development. Thirdly, Rizhao Steel can make use of the advantage of concentration, supply products intensively, and reduce costs of decentralized supply because there is a wide range of companies which provide accessories for Wuzheng Group. Fourth, Rizhao Steel sets up the business principle of “ten thousand people at service” and different divisions are clear-cut, coordinate with each other closely to guarantee the service before, during or after sales. He fully affirmed the the necessity of cooperation mode and expressed his confidence in the prospect of cooperation.
During the conference, leaders from more than 20 end-companies such as Wuzheng Group signed a "2 + N" strategic cooperation agreement with Rizhao Steel , which showed their confidence in deepening cooperation and realizing mutual benefit. After the conference, the company leaders, business representatives were divided into different groups to communicate with customers in different regions about the vehicle industry steel of agricultural equipments, and supply and demand cooperation, to negotiate the details about fulfilling business targets under "2+N" strategic cooperation framework, some customers also proposed to develop high-quality thin- gauge checkered plate used for new automate models.