RCIF invests in Zhaogang
The Russia-China Investment Fund (RCIF) – established by the Russian Direct Investment Fund and China Investment Corporation – has made an investment in Zhaogang, the largest e-commerce steel distribution platform in China.
Founded in 2012, Zhaogang is a digital B2B platform that brings together steel producers and consumers in China. It accounts for more than 40 per cent of the online market for steel products trading in China. Zhaogang also offers a wide range of value-add services: from logistics to financial services and legal transactional support.
Kirill Dmitriev, CEO of RDIF and co-CEO ofRCIF, says: “The Chinese steel market is heavily fragmented from the perspective of both manufacturers and buyers. This has created unique conditions for electronic B2B platforms like Zhaogang. The advanced technologies used by the company provide superior distribution channel efficiencies. We believe that the participation of a Russian investor in the company's share capital will enable Zhaogang to successfully implement its development plans in Russia. It will also help the company find new partners from other industries interested in using the e-platform.”
Bing Hu, Co-CEO and President of RCIF, says: “As the unparalleled leader in the Internet-based B2B steel distribution in China, Zhaogang has significantly enhanced the steel distribution sector’s efficiency and transparency, which well fits the theme of supply side reform in China. We have been closely monitoring the company’s development for three years, and we are glad to make the investment now as the company’s business model has been validated, after it has weathered the sector’s severe downturns and emerged as a winner. We believe RCIF’s investment will help the company implement its international business strategy in Russia and other countries along the One Belt and One Road.”