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Jiangxi Copper Signs a Cooperation Agreement With Tianjin Tewoo and Vanke to Seek Common Development

On June 21, Jiangxi Copper signed a strategic cooperation agreement with Tianjin Tewoo and Vanke in Shanghai to establish a strategic partnership, which will further give play to upstream and downstream industry chain synergies, and enhance the competitiveness of the cooperating enterprises. Li Yihuang, Vice Governor of Jiangxi Province, and Chen Deqin, Party Committee Secretary and Director of the SASAC of Jiangxi Province attended the signing ceremony. Jiangxi Copper's Deputy General Manager Huang Mingjin and Chief Financial Officer Wu Jinxing signed the agreement on behalf of the company respectively.

In recent years, as the commodity market continues to slump, cooperating with enterprises from the same industry and even another industry has become a new trend. At the news briefing with the theme of "Reform of State-Owned Enterprises" on June 2, the SASAC spokesperson Peng Huagang said next, the SASAC will continue to promote the reorganization of central enterprises and deepen the pilot program of central enterprise mergers and acquisitions. Li Jin, a chief researcher at China Enterprise Research Institute, also said recently that in the future, the industry's upstream and downstream enterprises may be vertically reorganized and integrated by industry chain correlation so as to internalize external transactions and reduce corporate costs. And Jiangxi Copper's cooperation with Tianjin Tewoo and Vanke is exactly in line with this model and more conducive to building powerful alliances through complementary advantages and creating a win-win situation, and will provide a reference for more state-owned enterprises to accelerate reform and development.

Both Tianjin Tewoo and Jiangxi Copper are large state-owned enterprises with a business scope covering important industries and key areas of national economy. According to the agreement, the two sides will innovate the management model and improve operational efficiency based on Jiangxi Copper's risk control ability and leading position in the non-ferrous metal industry chain and Tianjin Tewoo's integrated service capabilities and financial advantages in the commodity industry chain and its port business advantages in the Tianjin Free Trade Zone. Jiangxi Copper and Vanke will further revitalize land resources based on existing cooperation activities to achieve asset appreciation and promote efficiency improvement.