Baosteel supplies for the automobile industry

SteelOrbis Shanghai Baosteel is not only the largest steelmaker, but also the largest automobile steel supplier of China. So far, Baosteel has been supplying steel products for over thirty automobile manufacturers in China as their leading steel supplier. Besides, it also actively participates in designing automobile moulds in order to help its clients on hastening R&D works for new designs. As a result, Baosteel has not only achieved clients' confidence and appreciation, but also developed a wide application area for its steel products. Recently, after offering effective support services to FAW-VW Automobile Co. regarding the design of a new sedan, Baosteel's products have been delivered to the overseas mould producer for the production of the sample car. This means, a great success for Baosteel. Because Baosteel's products have been approved for use on this type of car and no more authentication is required. Apart from this new overseas success, Baosteel has been supplying steel for five types of sedans made in China, since their original designs. These are the milestones for Baosteel in its mission to become the leading steel supplier for automobile industry. It is well known that the development process of a new automobile type consists of five steps: 1. Overall programming, 2. Type designs, 3. Mould designs, 4. Trial production, 5. Massive production. Generally speaking, steel suppliers can be involved in any of these five phases. However, participation in earlier phases will be actually in favor of the steelmaker. European and American steel mills have set good examples in this regard. Baosteel is spending too much effort to improve its R&D, to become a world wide steelmaker. Regarding the automobile industry, it built a specialized automobile research institute several years ago to analyze automobile design/production technologies and steel applications on automobile. Brilliance, MAZDA, SAIC GM WULING and CHERY are among the local automobile mills that consume Baosteel's products. Shanghai based FAW-VW Automobile of German Volkswagen Group has also increased its annual steel purchase from Baosteel to 40,000 tons in 2006 from 1,600 tons. 70 percent of CHERY's and 100 percent of IF Steel's steel purchases are from Baosteel. Baosteel set a long term strategy to further develop its ties with the automobile industry. Therefore, it has started R&D works to obtain advanced automobile sheet application technology.