November 23, HBIS and US TMS Group held a video conference to sign the agreement of HBIS -- TMS Scrap Steel Processing Center Project. This is a new future oriented and coordinated strategic project of Chinese and US enterprises after the video conference of the leaders of the two countries. It is the first practical measure in response to the China-US Joint Glasgow Declaration on Enhancing Climate Action in the 2020s.
HBIS Chairman Yu Yong and Pritzker Organization Chairman Thomas J. Pritzker met in the conference and discussed the comprehensive application of scrap steel, carbon reduction and climate shift issues. HBIS President Wang Lanyu, Pritzker Organization Director & TMS Chairman Jason Pritzker attend the conference. HBIS Vice President & Chief Technology Officer Wang Xindong held the ceremony. TMS President and CEO Ray Kalouche made a presentation of the cooperation of the two companies.
In his speech, Yu Yong said the development of globalization comes from the common wisdom of mankind. Globalization complements the resources of different economies and enhances the efficiency with limited resources. HBIS and TMS are two enterprises brave to take their responsibilities promoting the econimic globalization and green development. Both need to be dedicated to fight the climate changes and protect our planet. This joint venture is a firm action after the China-US Joint Glasgow Declaration on Enhancing Climate Action in the 2020s.
Yu Yong said steel was the most important material, used by human beings, supporting our civilizations. Steel industry has its responsbilities coping with the climate shifts. In the past 30 years, with higher procedural efficiency, new carbon reduction technologies and the wide application of scrap steel, the global steel industry has reduce its comprehensive energy consumption per ton of steel by 50%. The traditional long steel making process consumes 2 tons of carbon for each ton of steel and the scarp steel based short procedure reduces the carbon to 0.5 ton for each ton of steel. China is the world’s largest steel producer and consumer, it is also the largest consumer of scrap steel materials. HBIS and TMS jointly create a model in the field of comprehensive utilization of scrap steel for green and low-carbon, which will certainly bring positive influence to the development of China's steel industry and even the world's steel industry. The strategic cooperation will reduce the carbon footprint for the world steel industry and their green steel will make a better future for all people in the world.
Mr.Jason Pritzker said scrap steel was a type of recycled material and an important solution to carbon reduction and green steel. As the leaders of their fields, the two companies should lead the development of further application of scrap steel. The Agreement matches the strategic plan and provides a framework for promoting the recovery of scrap steel and efficiency of their applications. In future, the partners will build deeper and stronger cooperation to contribute to the world, more importantly, to the two great nations and their peoples.
Wetnessed by Yu Yong, Thomas J. Pritzker, Wang Lanyu and Jason Pritzker, HBIS and TMS representatives signed the framework agreement. According to the concensus, a joint venture will be incorporated and it will take full advantages of HBIS demands and influence in the country and TMS knowhow in scrap steel recovery, processing and management in the industry to provide scrap recovery, processing, logistics, financing, trade and technologies to Chinese metallurgical communities.
HBIS is one of the largest steel manufacturers and service suppliers in the globe. It is a most internationalized Chinese steel mill in China, with assets in more 70 countries and regions and owns partners in over 120 countries. The US TMS group is a world leading scrap steel supplier, specialized in trade, processing and distributions. It is owned by the Pritzker family with 80 processing plants and working with clients in Amercias, Middle East and Southeast Asia. In September 2019, HBIS and TMS have already signed the MOU of the Processing and Distributions of Scrap Steel. The new agreement will enable the two companies to setup new ventures and acquire more resources to enhance the recovery, processing, financing and trade of scrap steel. The Joint Venture will become a leading player in the comprehensive industrial application of scrap materials in China and a rule maker of quality standards of metallurgical furnace scrap.