Recently, SUMEC International Technology Co, Ltd. (SUMEC-ITC), an affiliated company of SUMEC Group Corporation (SUMEC), has entered into new collaborations with three major coal mines in Indonesia, successfully signing long-term coal import contracts totaling over 2 million tons. This effort contributes to ensuring supply and stabilizing the price of coal in the domestic market.

Throughout this year, the coal market has experienced significant fluctuations, with a noticeable increase in imported coal. Indonesia stands as the largest source of coal imports for China, with medium to low-calorie thermal coal being the main variety. This coal type, characterized by its short transportation distance and suitability for the boiler design of southern power plants, plays a crucial role in regulating the coal market in northern and southern China. From January to October 2023, China imported 183 million tons of coal from Indonesia, accounting for 44% of Indonesia's total export of thermal coal.

In recent years, SUMEC-ITC has focused on coal import operations. It has timely analyzed market dynamics, explored key overseas resource hubs, and strengthened ties with upstream suppliers to boost its resource supply capabilities. SUMEC-ITC also expanded its reach by cultivating relationships with downstream physical enterprises, enhancing its ability to provide differentiated services. By building a comprehensive system connecting upstream resources, industry integration, and downstream terminals, SUMEC-ITC has successfully transformed and upgraded its business, leading to a continual expansion in the scale of coal import operations. Between January and November 2023, SUMEC-ITC imported over 11 million tons of coal. With a specific focus on Indonesia's highly competitive medium to low-calorie thermal coal, SUMEC-ITC has actively facilitated long-term contract negotiations for the year 2024. It has already secured successful agreements with three major coal mines in Indonesia, contributing notably to market regulation in both northern and southern China, and ensuring a stable supply and price of coal.

Building excellence for Sinomach and serving the nation’s needs, SUMEC is determined to put the dual circulation development strategy into action. Leveraging its strengths in integrated supply chain services, SUMEC will continuously boost the development of bulk commodity resources, speed up business transformation and upgrade, introduce more top-notch products, facilitate the growth of the domestic real economy, and contribute more substantially to safeguarding the energy security in China.