China's steel, automobile giants in close cooperation
( 2003-06-22 10:31) (Xinhua)
China's most modern steel company, Baosteel, said Saturday it has signed an
agreement on full cooperation with the First Automobile Works Group (FAW), the
biggest auto maker of China.
As a part of the deal, the two partners and Japan's Sumitomo Corp. will
jointly invest 176 million yuan (US$21 million) to establish a joint venture for
steel processing and product delivery to meet the needs of FAW for steel sheet.
According to company sources, Baosteel, or Shanghai Baosteel Group Company,
and FAW will cooperate in steel supply, steel technological development for the
use of steel, steel processing, logistics and business management, and car
sales.
The two partners will also seek new models of cooperation to meet the
increasingly fierce competition brought about by economic globalization and
promote the development China's steel and auto industries.
FAW has long been a client of quality steel products of Baosteel, which took
the fifth place in the world last year with an annual production of 20 million
tons and sales revenue of 77.7 billion yuan (US$9.4 billion).
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