Shougang Corp starts auto parts project in Beijing

Shanghai, July 2 (Gasgoo.com) The Beijing West Industries Group (BWI), an investment company under Shougang Corp, has recently started construction of its auto parts plant in Fangshan District, Beijing. The project will cost a total investment of 2 billion yuan ($295 milllion).

The first phase of the Fangshan project is expected to produce 4 million shock absorbers and the samples will be rolled out in March next year, Fang Jianyi, president of BWI said. So far, the Group has signed contracts with Audi, BMW and other high-end brands for supplying its products.

BWI was jointly founded by Shougang Corporation (with 51% of the equity), Beijing's Fangshan District (with 25%) and Bao'an Investment Development Co., Ltd. (with 24%). Through BWI's auto-parts project, Shougang Corporation, China's fourth-largest steel maker, expects to diversify its lines of business, with steel making still at the core.

Reportedly, Shougang Corporation will stop producing steel in the Beijing facility but mainly focus on the production of auto parts, the high-end metal materials and manufacturing equipments. The Group's transition in development now starts with the Fangshan project.

On November 21, 2009, BWI signed an agreement with Delphi Corporation for the purchase of the business units of Delphi Ride Dynamics and Brakes worth approximately $100 million.