Belo Horizonte, Brazil, 21 Nov – Chinese company Hangzhou Cogeneration Import and Export Co. (CIEC) plans to increase exports of Brazilian products, including not only raw materials but also semi-processed goods, the global chairman of the company said in Belo Horizonte.
Speaking to Brazilian daily financial newspaper Valor Económico during a visit last week to the capital of the state of Minas Gerais, Jiang Yuan Qing said that the company also planned to sign contracts to supply products and services for oil exploration in the Brazilian pre-salt layer as well as for the naval industry and rail sector.
CIEC, a subsidiary of the Hangzhou Steam Turbine & Power Company, which ahs been working in Brazil for six months, has bought 40,000 tons of steel products from companies such as Companhia Siderúrgica Nacional (CSN), Gerdau and Usiminas and is currently in the process of finding raw materials suppliers.
In the words of Daniel Reis, the former director of ArcelorMittal and current president of CIEC in Brazil, the Chinese company wants to occupy a part of the market that still belongs to large Western, particularly European, import and export companies.
As 51 percent of CIEC is owned by the state and the remaining 49 percent is in private hands, the group to which it belongs is 100 percent Chinese State owned, which gives the company access to a US$3.5 billion credit line, “which make sit possible for us to pay suppliers in just 24 hours, which is no longer the case with the European companies, which have a slower payment process,” noted Daniel Reis.
The Hangzhou Cogeneration Import and Export Co., which has six subsidiaries worldwide expects to end the year with imports of 13 million tons of iron ore, coal and pig iron and 4 million tons of steel, and its two biggest suppliers are the groups Rio Tinto and BHP Billiton, both from Australia.
In 2010 CIEC posted turnover of US$5.5 billion and the Hangzhou Steam Turbine & Power Company, which controls 18 subsidiaries posted turnover of US$9 billion. (macauhub)