German steelmaker ThyssenKrupp Group has announced that ThyssenKrupp Steel Europe will strengthen its position in the market for premium hot dip coated sheet for the automotive industry in China. While ThyssenKrupp Steel Europe already has a joint venture with Chinese steelmaker Angang Steel called TKAS Auto Steel Co. (Tagal), it has now signed an agreement with Angang for the construction of a hot dip coating company in the southwestern Chinese city of Chongqing. ThyssenKrupp Steel Europe will own 12.5 percent of this enterprise directly and 37.5 percent indirectly via Tagal. The other 50 percent will be held by Angang.
"We believe the strong current demand from the Chinese auto sector for hot dip coated steel sheet and the growth prospects in this segment offer clear opportunities and we therefore want to strengthen Tagal's position in this market," stated Dr. Heribert Fischer, responsible for sales and innovation on the executive board of ThyssenKrupp Steel Europe.
As an important supplier of the fast-growing Chinese auto industry, ThysseKrupp will strengthen its position through the new agreement, while the hot dip coating line is scheduled to go into operation later this year.