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On August 3, 2010, the signing ceremony of the strategic cooperation agreement between the Triangle Group and Sinopec was held in Weihai, marking the first step in the comprehensive cooperation between China's tire industry giant and China's largest energy chemical group. According to the agreement, Delta and Sinopec will cooperate in 10 areas including technology, commerce, and overseas markets in 10 areas. At the same time, they will establish a once-a-year and occasional special exchange mechanism for high-level and all-level meetings.
According to the strategic cooperation framework agreement reached by the two parties, Delta and Sinopec will integrate resources such as product technology and service network to promote the rational use of resources, diversified supply, and balanced supply of both parties; and jointly develop rubber tires and new materials.
For this purpose, Delta and Sinopec will carry out strategic cooperation in technology, business and overseas markets. Specifically, it includes the establishment of regular and standardized technical exchange platforms, joint application of synthetic rubber for tires and anti-aging agents, improvement of the application level of lubricants, oils, and other chemical products; and the matching performance of chemical materials in rubber tire applications. Research, realizing synchronous design and simultaneous development; applying key design, co-sponsoring projects, jointly applying for national or local scientific and technological projects; actively developing green and environmentally-friendly materials and low-cost domestically produced alternative materials, and actively promoting industrialization.
Regarding business cooperation, the two parties pledged to purchase the other party's products with priority. Sinopec confirmed that Triangle Group is the preferred supplier of raw materials. Triangle Group will purchase synthetic rubber, antioxidants, lubricants, oil products and other chemical products from Sinopec, and associate suppliers with it. Sinopec is designated to use Sinopec; Sinopec will preferentially purchase triangular products in its engineering construction, logistics and transportation. Sinopec will also use its distribution station network resources throughout the country to sell triangular products. In terms of cooperation in overseas markets, Delta and Sinopec will explore cooperation models based on the two parties' related products to jointly expand the international market.
To this end, the two sides decided to establish a "Sinopec-Triangle Group" strategic cooperation working group, set up a sub-project working group, establish a regular exchange and consultation system, high-level and each level meets once a year.
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