Baori Auto Sheet project comes on stream

Baori Auto Sheet project comes on stream

Baori Auto Sheet Company - a Baosteel, Nippon Steel and Arcelor joint venture - began operation yesterday, November 8. Baosteel holds a 50 percent stake in the RMB 6.5 billion ($804 million) project, followed by Nippon Steel with 38 percent and Arcelor with 12 percent. The annual production capacity of Baori Auto Sheet will reach 1.7 million metric tons, among which CR sheet/coil will account for 900’000 metric tons, and hot galvanized sheet/coil will account for 800’000 metric tons. The project will adopt advanced technology introduced by Nippon Steel and Arcelor to produce high grade sheet for automobiles. At present, only Baosteel produces auto sheet in China, and its output in the previous year accounted for 47.3 percent of the domestic sedan market share. By 2010, the sales volume of the auto industry is expected to exceed 9 million vehicles per year. Annual consumption of steel product for automobiles will reach 11 million metric tons by 2010, while steel consumption for auto parts will reach 6.45 million metric tons. Baosteel and Nippon Steel used the ribbon-cutting ceremony as a chance to reiterate their unwillingness to accept an increase in the price of iron ore. Mr. Xu Lejiang, general manager of Baosteel Group, also dismissed rumors that his company would establish a steel mill in India. Mr. Guy Dolle, president of Arcelor, indicated that their potential procurement of shares of Laiwu steel is still under discussion and nothing has yet been decided. SteelOrbis Shanghai