EC Approves Joint Venture by Baosteel, Baowu Aluminum, and Kobe Steel for Automotive Aluminum Sheets

Published: Sep 9, 2024 14:06

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The European Commission has recently confirmed the approval for Baoshan Iron & Steel Co., Ltd. (Baosteel), Baowu Aluminum Technology Co., Ltd., and Kobe Steel, Ltd. of Japan to jointly establish an automotive aluminum sheet joint venture. This collaboration aims to address the growing demand for lightweight materials in the automotive industry, particularly in the manufacturing process of new energy vehicles, where aluminum alloys have attracted significant attention due to their lightweight and environmentally friendly characteristics.

The tentative name of this joint venture is Baosteel Kobe Automotive Aluminum Sheet (Shanghai) Co., Ltd., with its registration location set in Shanghai and a capital fund reaching approximately 900 million Chinese yuan (around 18 billion Japanese yen). Kobe Steel Investment Co., Ltd. will hold a 50% stake, while Baosteel and Baowu Aluminum Technology will jointly hold the remaining 50%. The new company plans to mainly serve domestic automakers by producing and selling aluminum sheets, leveraging the strengths of all three parties in production, technology, and marketing to establish a high-quality production system for aluminum sheet materials used in automotive bodies.

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