Alibaba Group Holding and China’s steel makers join together to sell steel over the internet.
Alibaba Group is collaborating with China’s steel manufacturers. Chinese steel makers have taken a new initiative in the highly competitive market by shifting towards the internet and delivering their goods through a webpage backed by the Hangzhou-based enterprise. According to the details filed in the Shanghai stock exchange, the most populated country’s biggest state owned trader of metal, stated it had signed a contract with an organization supported by the online ecommerce giant to jointly develop a network that permits enterprises to carry out trading of steel.
Alibaba news exclaimed that Hangzhou Ali Venture Capital, an investment company in which Alibaba’s owner Jack Ma is holding 80% of the stock, stated that it would jointly develop an online steel trading network with the bigger state owned organization, Minmetals Development.
Hangzhou Ali Venture would pledge £32 million (316.8m Yuan) to the fast development of the network. This measure has taken place at a time when British steel manufacturers are urgently seeking assistance from their regime as they battle for survival when China’s steel is dumped on markets across the world.
The steel sector suffered from a crisis amidst an inflow of the second largest economy’s inexpensive steel imports, and is being pushed towards a breaking point as taxes have been imposed and costs of power are quite high.
Alibaba Breaking news affirmed that the ecommerce giant has tied up with Chinese steel makers at a time when it has announced that it is setting up offices in the European cities, Paris and Munich, the organization stated on Monday. The measure is the most recent in a series of moves that were initiated two years ago when the Asian enterprise began seeking business collaborations to lure more imported goods for sale to Chinese buyers on Tmall and Taobao.
Sales across the border let Alibaba differentiate its online markets from Chinese rivals such as JD, whereas also sating increasing demand in the People’s Republic of China for new goods from across the globe. Alibaba news today revealed that the company’s French and German offices – to be managed by country heads Sébastien Badault and Terry Von Bibra, respectively – would “serve as a ‘gateway to China’ for international brands and businesses of all sizes,” the company stated.
An official at Alibaba Group , Michael Evans stated “In Europe, our top priority is to engage with existing local partners and help European brands, retailers, small businesses, and government partners understand the opportunities China offers and how Alibaba can help them access this market,”
The company has earlier established offices to meet the same objective in Italy and United Kingdom last month. It is also based in the U.S. Its exponential growth is evident despite China’s economic slowdown.