Last year, Baosteel successfully seized the market opportunities of domestic automobile industry and sales and production of stainless steel products for auto exhaust system was booming, with growth rate of nearly 60%. (Growth rate had been over 50% for 2 consecutive years) and an increase of 295% in exclusive and leading varieties. Meanwhile, the product structure was further optimized and efficiency significantly improved. The domestic market share of Baosteel stainless steel for auto exhaust system raised from 19% in 2009 to 30%.
Last year, Baosteel automotive exhaust system stainless steel production, sales and research team continued to explore and promote stainless steel product certification model based on auto main engine plants and supported by spare parts assembly plants. A number of professional auto-making joint ventures and self-own brands in Shanghai, Tianjin, Shenzhen and Xi'an continued to expand or start work of certification on domestic substitution of imports by Baosteel auto exhaust system ferritic stainless steel and gradually expanded the domestic materials' production.
Stainless Steel Business Unit main division's B409M variety have substituted imports in well-known U.S. standard mainengine plant in China. Up to now, Baosteel auto exhaust system stainless steel certification has coverd US, European, Japanese and domestic auto brand.
The application of Baosteel auto exhaust system stainless steel products has been extended from the low-temperature section of exhaust pipe to the high temperature section which is corrosion resistant, high temperature resistant and requires higher standard. The application of B441, B429, B444M2 products are fully promoted in the high temperature section manifold of the exhaust system.
Currently, a main engine plant in the northeast region has adopted Baosteel high-temperature section manifold and it has passed trial. A famous automobile exhaust system supporting business in Hebei has also successfully applied Baosteel B429 products in manufacturing the exhaust system manifold.Meanwhile, the laser welded pipe made by Stainless Steel Business Unit B441has been used in the new BMW 5 Series sedan and sales continues to climb.
On July 1 last year, China enforced the implementation of three motorcycle emission national standards. The production sales and research team seized the opportunity when motorcycle industry emission standards were raised and did technological exchanges with customers and offered services. Last year, there were many well-known domestic motorcycle enterprises which accomplished trial of Baosteel exhaust system stainless steel products. At present, motorcycle manufacturers which occupy the largest share in the domestic motorcycle market have begun bulk purchases of Baosteel 409L products.
