Shougang marches into auto parts industry

Shougang is endeavoring to include the auto parts industry as one of its bolstering fields of business. BWI, which is 51 percent owned by Shougang, generated $160 million in revenues in the first quarter after the company took over the suspension and braking units of Delphi in March 2009. Its total sales revenue is expected to top $600 million this year. BWI is also planning to set up a world-class absorber manufacturing plant in Fangshan District, Beijing. Seizing on this opportunity, Shougang is ready to reposition itself as a producer of flat products, notably high-end auto steel. The group is supposed to sell one million tons of auto steel in 2010.