The Datong Coal Mine Group and Shanxi Coking Coal Group signed a strategic cooperation agreement with Shanxi TZ Coal Mine Whole-Set Equipment and Shanxi Pingyang Industry Machinery on Nov 2, marking a significant development in the cooperation of two provincial industries, coal and coal machinery.

In late October, the Guidance for Speeding up Strategic Cooperation between Coal Enterprises and Coal Machinery Enterprises in Shanxi Province (Guiding Opinions) was released. It promoted strategic cooperation by “sharing resources, fostering complementary advantages, coordinating development and cooperating mutually”. The guidance sought to realize product-service output within two years to ensure that coal machinery purchases by coal enterprises in Shanxi province covered at least 60 percent of the province’s total demand.

The provincial coal machinery industry has suffered from low market share for a long time. In 2011, the proportion of Shanxi coal machinery products in use in provincial coal enterprises only reached 40 percent. Nearly 60 percent of the market share was occupied by coal machinery enterprises from outside the province and from overseas. High demand in the coal-rich province did not bring advantages to the coal machine manufacturing industry. As a result measures were required to boost the local coal machine manufacturing industry.

Edited by Michael Thai