DAVOS, Switzerland, Jan. 21 (Xinhua) -- King Cheung, Chairman of the Board of Cedar Holdings said in his interview in Davos, Switzerland with Xinhua that 2020 is key to Cedar's strategic transformation. Cedar will further streamline its business structure, focus on its core business for industrial development, building a world-leading commodities group.
He added that Cedar Holdings will actively drive forward development and operation of the whole commodities chain across the globe, focusing on commodities resources, supply chain services and supply chain finance. At the same time, Cedar will make continuous efforts in advanced manufacturing of commodities including fine chemicals and new metal materials.
"We further our efforts on the downstream and upstream of the commodities industrial chain. Sourcing important mineral resources overseas will be our focus on the upstream while new materials and advanced manufacturing will be our focus on the downstream," He added.
Cedar Holdings, signed a SPA with Stemcor, an international steel and raw material trader during the 2020 World Economic Forum Annual Meeting. The SPA sees Cedar Holdings purchased 100% share capital of Stemcor.
King Cheung told the reporters from Xinhua that acquiring Stemcor is key to Cedar's business development. This will improve Cedar's international supply chain and sales network, accelerating its globalization drive. At the same time, this purchase would present great synergy potential, enriching Cedar's ferrous metal industrial chain and the categories of its products.
Cedar's globalization strategy, as he pointed out, is a neccessary result of the nature of commodities sector of China. "As one of the world's largest commodities producers, China is short of raw materials for many areas due to the global resources uneven distribution. That's why China's commodities enterprises have to expand its global presence for a worldwide commodities industrial chain."
King Cheung believed that establishing global business landscape is a must for commodities companies to achieve a breakthrough development.
In July 2019, Qixiang Tengda under Cedar Holdings signed HPPO process licensing agreement and technology service agreement with Evonik and ThyssenKrupp from Germany, bringing in the most environmentally-friendly PO process technology. In August 2019, the construction of Tianchen Qixiang production site of nylon and new materials with an annual output of 1 million mt, which was jointly invested by Qixiang Tengda and China Tianchen Engineering Corporation (TCC) was launched. Once completed, it will become the first ADN project of China and, hopefully, lead to a break out of technology monopoly of foreign countries as well as ADN technology and industry takeoff in China. Earlier in 2018, Cedar Holdings purchased 51% share of Granite Capital, an international petrochemical commodities trader, rapidly entering the international chemical supply chain.
According to King Cheung, Cedar will launch its overseas market expansion along the route of Belt and Road initiative, focusing on countries rich in resources and cutting-edge technology.
"Our overseas market expansion will create jobs for the local areas. The large consumption power of China will drive our overseas business to grow. That's how a positive loop will work." King Cheung said that joining in building the Belt and Road initiative will bring mutually beneficial and win-win result.
When it comes to emerging technology like blockchain and 5G, etc, King Chueng said that Cedar is exploring the blockchain technology application on the commodities supply chain. Meanwhile, by drawing on its incumbent advantages in resources and market of the copper industrial chain, Cedar is focusing on the advancing manufacturing of new metal materials. As South China's largest provider of the whole spectrum of copper products, Cedar has produced high-end copper-based materials which are widely used in the 5G industrial chain, new energy vehicles, smart appliances and other high-end equipment manufacturing sectors.
As a Guangzhou homegrown conglomerate listed on the Fortune Global 500, Cedar Holdings is positive about the Guangdong-HongKong-Macau Greater Bay Area construction. The Greater Bay Area is home to 80% of China's supply chain enterprises and more than 300 diverse industrial clusters. With a well-established logistics and transportation system, and huge potential for economic development and consumption, the Greater Bay offers an excellent industry foundation and a vast market for different supply chain development, said King Cheung.
He added that the quality development of the commodities supply chain will become the indispensable driving force for the Greater Bay to overtake the other world-class Bay Areas in the cutthroat competition.
Founded in 1997, Cedar Holdings, the Guangzhou-based company own two A-listed companies - Qixiang Tengda and Sinoer. Cedar has branches covering Hong Kong, Singapore, Switzerland, Germany, the UK, France and the U.S., as well as offices spreading across Asia, Europe, America and Africa.
Sources From: Xinhua Finance