Yan Jiqing, Director of Material Management Department, China Guodian Material Group and Jorg Kluever, Chief Operating Officer, Buhlmann GmbH, at the signing ceremony. [Photo/chinadaily.com.cn]

SHANGHAI – The German company Buhlmann Goup and Guodian Material Corporation signed a frame agreement Wednesday aimed at enhancing the Chinese state-owned firm's power production and construction projects.

Guodian is one of the nation's five largest power producers, with a network spanning 31 provinces and 110,000 employees. There are 200 smaller electricity companies under its ownership.

Guodian's new partner Buhlmann Group is one of Europe's foremost independent stockholders for steel pipes, fittings and flanges. Buhlmann supplies companies worldwide in diverse industries including energy, petrochemicals and shipbuilding. Bulhlmann China Ltd - the company's Shanghai branch office - will support cooperation with Guodian.

The family-owned Buhlmann Group was founded in 1945 by Karl-August and Mathilde Buhlmann. Today the firm is led by their sons Bernhard and Karl Buhlmann. The German company has over 600 employees in 21 branches and 9 indoor warehouses in 14 countries.

"The whole Buhlmann Group is very proud to be of service to one of the largest power generation groups in China," said Karl Buhlmann. "This frame agreement we will sign today is a milestone in our company history."

German Deputy Consul General Stefan Moebs said the agreement was economically important but had even greater implications.

"This agreement goes beyond economics," he said. "State-of-the-art infrastructure and power supply are necessary preconditions for further development and raising standards of living."