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LGI CEO Song Chi-ho Vows to Expand China Business
Date : 2015-03-26 | View : 15,546

LGI CEO Song Chi-ho Vows to Expand China Business

  • - In Gansusheng, China, the LGI CEO met the governor and signed a business MOU
  • - He vows to create new businesses with big growth potential in northwestern China

Gansusheng, China, March 16 - LGI CEO Song Chi-ho signed here an MOU with Governor Liu Weiping for a joint investment with Gansu Diantou, the province’s major investment group, to revitalize LGI’s China business, the company announced on March 19.

Also in the meeting were Vice Governor Huang Qiang, Chief Secretary Zhang Shengzhen, and other high-ranking provincial officials.

Song and Governor Liu also discussed the province’s major development plans, and agreed to cooperate for successful business investments.

Gansusheng is attracting attention as the hub of the overland Economic Silk Road Belt that connects Central Asia and Europe, according to the Xi Jinping government’s One-Belt, One-Road construction plan. The province is diversifying its industries and focusing on light and heavy industries, and it is expected to achieve high growth as the center of the development of northwestern China.

LGI’s MOU with the Gansu Diantou Group was on their joint investment in power generation and logistics projects. The Chinese group, Gansusheng’s 100% government-invested large investor, develops coal and railroad transport systems and runs power generation businesses such as coal, hydraulic, and wind power generation.

With the MOU signing, LGI is poised to pursue strategic alliances with the Chinese Group through projects such as the construction of a coal-fired cogeneration power station in Wuwei, a hydroelectric power station in Hekou, and a coal-fired power station in Jiuquan Changle.

An LGI official said, “CEO Song has keenly watched northwestern China as an area with significant economic growth potential, and has followed the One-Belt, One-Road policy trends. While on his trip there, he toured and closely observed the major business sites of the Gansu Diantou Group.”

LGI began developing the Wantugou coal mine in Inner Mongolia, China in 2008, became the first Korean company to have a stake in the coal-based chemical urea plant, and further advanced into local resource development projects. As such, it is continually expanding its local businesses in the area.

[Reference 1] One-Belt, One-Road (land-sea silk road) Initiative

The word Idaiiru, meaning “one belt and one road,” combines the words Idai, which is the Silk Road Economic Belt that connects China, Central Asia, and Europe over land, and Iru, the 21st-century Marine Silk Road that connects Southeast Asia, Southwestern Asia, Europe, and Africa, in collaboration with ASEAN nations. The Xi Jinping government determined the key task of its 13th five-year economic development plan (13·5 initiative) as regional economic development, and towards that end, is pushing ahead with the Idaiiru initiative. With such initiative, China expects to revitalize its domestic economy, boost its external economic cooperation, secure resources, and enhance its global profile as a top economy.

[Reference 2] Gansu Diantou Group’s major power generation projects

CategoryCoal-fired cogeneration power station in WuweiHydroelectric power station in HekouCoal-fired power station in Jiuquan Changle
Size700 MW (steam: 420 t/h)74 MW4000 MW

▲ LGI CEO Song Chi-Ho(left) and Governor Liu Weiping