Northern Rare Earth Reorganizes Gansu Rare Earth New Material to Forge a Strong Partnership



Northern Rare Earth Reorganizes Gansu Rare Earth New Material to Forge a Strong Partnership

On January 22, the State-owned Assets Supervision and Administration Commission (SASAC) of Gansu Provincial Government and China Northern Rare Earth Group High-Tech Co., Ltd. (Northern Rare Earth) signed a Gansu Rare Earth New Material Co., Ltd. reorganization agreement, while the Baiyin Municipal Government and Gansu Rare Earth New Material signed a cooperation and service assurance agreement, marking Northern Rare Earth's successful settlement in Baiyin, Gansu.It's reported that after the completion of the reorganization, Baogang Group will hold a 49.35% stake in Gansu Rare Earth New Material, while the enterprises affiliated to the SASAC of Gansu Provincial Government 26.96%. The two shareholders can give full play to their respective advantages to support the development of enterprises. Adjusting the corporate governance structure, optimizing the incentive and restraint mechanism, strengthening internal management, and establishing a modern enterprise system with Chinese characteristics can better stimulate the vitality of enterprises, and further develop the new rare earth materials industry in Gansu.

Baiyin is the rare earth industry base of Gansu Province. The reorganization cooperation between Northern Rare Earth and Gansu Rare Earth New Material is a specific approach to implementing the high-quality development requirement and promoting the supply-side structural reform, a concrete action that responds to the central government's call for a rare earth industry structure dominated by large enterprise groups through mergers and integration, as well as a realistic choice to solve the shortage of rare earth resources based on the long-term development of new rare earth materials in Gansu. Northern Rare Earth boasts the largest rare earth resources in the world, while Gansu Rare Earth New Material enjoys an industry-leading rare earth smelting and separation technology. The strong partnership between the two enterprises, approved by the Gansu Provincial Government, will complement Gansu Rare Earth New Material's shortage of materials, promote its high-quality development, effectively protect the interests of workers, provide more high-quality products to the society, and achieve mutual benefit and win-win. The reorganization of the two enterprises will further boost Baiyin's rare earth industry as well as support the development of local economy.