Baosteel to sell 3.66 million tons of auto plate this year

Shanghai. February 20 (Gasgoo.com) – China’s biggest steel maker Baoteel announced plans to sell 3.66 million tons of automobile plate this year and the steel maker also vows to hold on to 50 percent of China’s cold-rolled auto plate market, Shanghai Securities News reported today.

 

The report also said that Baoteel is seeking to become auto plate suppliers for global automakers including BMW AG and Mercedes-Benz.

 

Last December, Shanghai Automotive Industry Corporation (SAIC) has recently signed a deal with the Baosteel Group. Under the deal, Baosteel will supply steel wheels to SAIC. 

 

Baosteel plans to build a new factory with an annual capacity of 6 million wheels in Baoshan, the north suburbs of Shanghai. SAIC agrees to provide technical support to the venture. The two state-owned companies have been strategic partners for several years. The Xinhua News report does not include financial details about the deal. 

 

Separately, Chinese auto-maker Chery signed strategic cooperation agreement with Baosteel Group last year. Under the agreement, the two sides will further strengthen their cooperation on steel plate logistic and processing. Baosteel will continue to supply high-quality steel products to Chery; in return, Chery will provide technical support to Baosteel's research and testing.

 

"We have been using Baosteel's products since we began to build our first car and I am glad to say this cooperation agreement marks a new level of co-operation between the two sides," Chery Automobile Company President Yin Tongyao said.