EU Clears Baosteel, Baowu, Kobe Steel Joint Venture for Auto Aluminum Sheets

The European Commission recently approved Baoshan Iron & Steel Co., Ltd. (Baosteel), Baowu Aluminum Technology Co., Ltd., and Kobe Steel, Ltd. of Japan to jointly establish a joint venture for automotive aluminum sheets. This move aims to respond to the demand for lightweight materials in the automotive industry, particularly in the field of new energy vehicle manufacturing, where aluminum alloy materials are highly regarded for their lightweight and environmentally friendly properties.

The joint venture, tentatively named Baosteel-Kobe Automotive Aluminum Sheets (Shanghai) Co., Ltd., has a registered capital of approximately RMB 900 million and is located in Shanghai. Kobe Steel Investment Co., Ltd. will hold a 50% stake, while Baosteel and Baowu Aluminum Technology will jointly contribute the remaining 50%, with each holding half. The joint venture will focus on the production and sales of aluminum sheets for domestic automakers in China, while leveraging the strengths of the three parties in production, technology, and marketing to strive for the establishment of a high-quality production system for automotive body aluminum materials.