Baosteel to raise sales to Honda China by 43%

It is reported that Baoshan Iron & Steel Company will increase sales to Honda Motor Company of Chinese unit by 43% next year even as the carmaker has cut output amid falling demand.

As per report, Baosteel will sell 100,000 tonnes of steel to Guangzhou Honda, compared with 70,000 tonnes this year. Baosteel's sales to the unit have more than doubled this year.

China's car sales started to slow in the second half as the Beijing Olympics in August curbed purchases and the global financial crisis damped demand.

Baosteel Group Corporation said that there was a drastic shrinkage of automobile sheet sales in the second half.

Baosteel said that Honda Motor, Toyota Motor Corporation and other Japanese automakers had been using steel imported from Japan in their China units.