China’s Ansteel Group has entered into a strategic partnership with electric vehicle manufacturer BYD in Shenzhen. The deal will ensure steel supply and develop lightweight, high-strength new material for application in new energy commercial, passenger vehicle and rail segment.
The two companies will also cooperate on new concepts and technologies to develop green and low-carbon economy and produce green materials. The alliance will bank on the expertise and advantages of both the companies to explore new ways of cooperation between automobile and steel enterprises.
BYD engages in the manufacture of automobiles, new energy vehicles, rail transit and electronics. Ansteel and BYD have agreed to share resources, engage in technical cooperation for vehicle development, smart manufacturing, engineering projects, localized supply services and other multi-dimensional alliances.
Ansteel Group is also reengaging with its key customers to increase its market share. It has strategic partnerships will several key steel consuming companies. In 2019, Ansteel Group ranked as the seventh largest steelmaker in the world, with an annual production of 39.2mn mt crude steel. The state-owned enterprise has 7 production bases in China and among the most resource rich steelmakers with iron ore mines in Liaoning and Sichuan in China and majority stakes in Karara mine, Australia.