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Under a deal struck between the two, AVIC Sichuan will share its customer base and logistics network as well as market intelligence with L&L. The Seattle-headquartered L&L also will have access to the Chinese company’s financial capabilities.
The pair’s initial area of focus will be Chongqing City and Chengdu City, both massive markets with populations of 28 million and 14 million, respectively.
The latter is a vital economic and transportation hub of western China, and both have a large coal demand.
“We are excited to enter a business alliance … and to expand our business into the large Sichuan market, which needs coal,” L&L chairman and chief executive Dickson Lee said.
“Working with AVIC Sichuan will help streamline our coal logistics and grow our sales opportunities. Leveraging [the company’s] strong, established reputation in the region will allow us to explore new financial capabilities, helping us execute our growth strategy.”
AVIC Sichuan, a division of the massive AVIC International Holding, possesses a strong coal network in Chongqing City, with assets of more than $US15.7 billion (RMB100 billion).
