ZK International Group Co., Ltd., a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, has entered into an exclusive supply and distribution framework agreement with Shandong Huaye Group, a leading structural and fencing piping products manufacturer and suppliers in China, for Huaye's ongoing production line and machine upgrades and act as theZK's strategic supplier and distributor.
The Upgrades, with Huaye's plan to allocate a total budget of RMB 350 million, is now underway at Huaye's existing 120,000 square meters facility in Mengyin County, Shandong Province. The company licensed its patented technologies and assigned experienced engineers to support the Upgrades. Phase I of the upgrades is expected to be completed by September 2020 and will enable Huaye to manufacture premium gas and water pipe products that the company specializes in.
Jiancong Huang, chairman and CEOr of ZK International, commented, "For over 18 years, Huaye has established itself as one of the leading manufacturers and suppliers of stainless steel structural and fencing piping products in the Northern and Eastern regions of China, particularly in Shandong Province. We are pleased to leverage our technological know-how with the Huaye partnership by assisting Huaye in its production line, re-tooling, and machine upgrades. As we are exploring potential broader cooperation with Huaye, we are optimistic that a geographically complementary and mutually beneficial relationship can be developed between the two parties."