Chery, Wugang to jointly build auto-parts production base
Shanghai, July 2 (Gasgoo.com) Chery Auto and Wuhan Iron and Steel Co., Ltd. (Wugang) will jointly build a car components production base, which will be put into production next year, media reported.
It is reported that this base will mainly focus on the production of stamping parts. Wugang will adopt an equity participation pattern to join with Chery, but the specific amount of investment and shares were not disclosed.
With the blooming of the car market, more and more steel manufacturers in China have the inclination to enter the auto industry, because once they process the steels to car components, the profit margin will be greatly expanded.
Last Friday, Beijing Shougang Co., Ltd. officially started its auto-parts plant in Fangshan (Beijing). Baoshan Iron and Steel Co., Ltd. also cooperated with Guangzhou Automobile Group Co., Ltd. to enter the car production field.
A source from Wugang added that when time is ripe, Wugang may invest in automobile plants.
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