Economy

Markets

Industries

Insights

Reports

Events

Northern Heavy Industries wins $48.7m Vale contract

By Liu Ce (chinadaily.com.cn)
Updated: 2009-02-19 17:02

Northern Heavy Industries Group Co Ltd (NHI) signed a $48.7 million contract with Vale on Thursday for the latter's purchase of 20 belt conveyors and a sampling system. The two companies also signed a cooperation memorandum for a long-term partnership.

Related readings:  China to discuss machinery, textile plans  Chinese machinery industry to slow down in 2009  China's Sany Heavy to build plant in Germany  Construction machinery giants plan joint venture

The contract includes all the accessories and auxiliary equipment to be used in the Brazilian firm's pelletizing project in Oman.

Vale is the world's second-largest diversified mining company in terms of market capitalization. With a presence in over 30 countries, it is as well known as the world's largest producer of iron ore and pellets, and one of the largest producers of nickel.

To date, Vale's purchases from China have totaled more than $2.8 billion.

"The Omani project contract is only one of the exciting ventures that will be carried out in the years to come. Cooperation between the two firms will have a brilliant future," said Garka Grasso, executive director of Vale.

"Cooperation between NHI and Vale benefits both sides. Also, it's a new chapter in NHI's global strategy," said Geng Hongchen, president of NHI.

In 2008, Vale already awarded NHI two contracts worth a total of $32.5 million for its Serra Sul and Mozambique projects.

"Last year, we achieved overseas contracts worth a total of $376 million by relying on independent innovation," Geng added. "In 2009, the value of our exports will reach $300 million."

NHI is a leading manufacturer in China's heavy machinery industry consisting of Shenyang Heavy Machinery Co Ltd and Shenyang Mining Machinery Group. Its products are exported to over 30 countries and regions.

Wang Ying, vice-mayor of Shenyang, expressed his hope that the cooperation between the two companies would contribute to the city's overall economic growth.