Logistics & Transportation
We primarily use the following three methods to ship industrial gas products:
• Pipeline: We pipe our industrial gas products directly from our production facilities to our customer's facilities. If our production facilities are at the same location or in the vicinity of the customer's facilities, then a pipeline is our primary mode of conveying industrial gas products.
• Tanker Truck: We use tanker trucks to ship industrial gas products by public roads, and deliver them to our customer's storage facilities. We have a dedicated tanker truck team, and we have hired a third-party tank truck operator to service our retail customers.
• Packaged Gas: We use cylinders to ship small volumes of packaged gas to retail customers with lower consumption requirements.
We run integrated management for both Yingde Gases and Baosteel Gases logistics facilities. In addition, we have developed and launched our own intelligent shipping platform, automatically allocating tanker trucks based on the distance between the truck and the factory, or the truck and the customer, to optimize factory distribution and save on shipping costs.