Baosteel Group and SAIC sign an overall cooperation agreement

On July 23, 2003, Shanghai Baosteel Group Corporation (Baosteel Group) and Shanghai Automotive Industry Corporation (SAIC) signed an overall cooperation agreement. This is a strategic choice made by the two Shanghai based giants for their further development.

According to the agreement, both parties will not only further strengthen business ties in aspects like steel supply, steel processing, new products research and development, but also collaborate in new areas such as logistics, automobile sales and e-commerce.

Baosteel is the largest modernized iron and steel enterprise in our country, and also the biggest supplier for SAIC. SAIC is one of the largest automobile groups with the biggest automobile sales in China. It is also Baosteel's important strategic user. Take Shanghai Volkswagen that is under SAIC, for example, the cooperation between the two companies has lasted for 15 years since Baosteel sold Shanghai Volkswagen the first batch of auto sheet in January of 1989.

From 1989 to 2002, all the outer panels provided by Baosteel for old and new model Santana have passed the attestation and ordered in batches. In June of 2003, 122 spare parts of Passat, the raw material of which was supplied by Baosteel, passed the attestation, too. At present, the car Pole has used Baosteel material with 13 specifications. And the purchase contract for August this year has been signed. Baosteel has supplied over 1.5 million tons of auto-used sheets to SAIC, according to the statistics of the two companies.