NYK Concludes Long-Term Contract with Baoshan Iron & Steel for Transportation of Iron Ore from Brazil to China
September 5, 2005
On September 5, Nippon Yusen Kaisha (NYK) held a signing ceremony establishing a 12-year contract with Shanghai Baosteel International Economic & Trading Co. Ltd. (Baoshan Iron & Steel) to transport iron ore from Brazil to China starting in 2006.
He Wenbo, vice-president of Baoshan Iron & Steel, and Koji Miyahara, president of NYK, attended the ceremony, and Mr. He and Michio Tamiya, senior managing director of NYK, signed the contract. The contract states that approximately 600,000 tons of iron ore per year will be transported from Brazil to China for a period of 12 years. Shipments will start from the beginning of the first half of 2006.
This agreement between NYK and Baoshan Iron & Steel is the second long-term contract to be established between the two companies. In 2003, NYK and Baoshan entered into a 10-year contract for shipments of iron ore from Western Australia.
The Baoshan Iron & Steel Group produced 21.5 million tons of basic steel in 2004. Since other major iron and steel companies in China individually produce basic steel at levels between approximately 8-10 million tons, the Baoshan Iron & Steel Group is clearly China's leading producer of basic steel.