BEIJING, Mar. 2 -- As the profits declined in logistics and steel industry due to financial crisis, two industry leaders in Hebei province, Hebei Logistics Group and Hebei I/S Group signed strategic agreement, and Hebei Logistics Group will fully integrate into steel industry chain and will play the role of third-party logistics from raw material purchase to sales of products, and change the production model with sales based on production and the inventory as the center at Hebei I/S Group.

    According to the agreement, Hebei Logistics Group will be responsible for the sales of 1.2 million mt of steel products at Hebei I/S Group this year, and will be responsible for the purchase and supply of 2 million mt of coal, 2.5 million mt of iron ore concentrate, 500kt of pig iron and 300kt of coke.

    According to the officials of Hebei Logistics Group, they have began to extend from steel trade to integrated services, and provide the comprehensive services about pre-production, production and post-production actively. The large-scale specialized logistics enterprise has special advantages in marketing system compared to steel producers, so that the transaction process and cost will be reduced and eventually the logistics cost will be also reduced.

    For more information, please refer to http://cbimetal.cbichina.com

    (Edited by CBI China)