Baosteel and FAW agree on full cooperation
According to reports from the industry, Chinese Shanghai based steelmaker Baosteel has signed an agreement on full cooperation with the Chinese biggest auto maker First Automobile Works Group (FAW). Baosteel, FAW and Japan's Sumitomo Corp. will form a joint venture for steel processing and product delivery in order to meet the needs of FAW for steel sheet, as a part of the deal. The investment will cost Yuan 176 million (approx. $21 million). It is stated that the two company will collaborate steel supply, steel technological development for the use of steel, steel processing, logistics, business management and car sales. Baosteel and FAW also aim to find out new models of cooperation in order to take a more competitive stance against the economicglobalization and improve the development China's steel and automotive industries. FAW is the world's fifth auto maker with an annual production of 20 million tons and sales revenue of Yuan 78 billion (approx. $9 billion) in 2002.