Baosteel's 500 Million Steel Project Supports FAW Volkswagen

With the deployment of FAW-Volkswagen in Foshan, the world's top 500 Baosteel Group decided to provide supporting facilities for the investment and construction processing center around the FAW-Volkswagen Foshan plant. Yesterday, the Group signed a contract for the construction of a steel logistics processing and distribution project with an investment of 500 million yuan to settle in Sanshui Industrial Park. It is expected that the annual sales revenue will reach 975 to 133 million yuan. As a strategic partner of FAW-Volkswagen, Baosteel has been providing FAW-Volkswagen manufacturing bases with processing and distribution services. “We can deliver products to customers such as FAW-Volkswagen within half an hour,” said the person in charge of Baosteel Group. The project is planned to be invested by Shanghai Baosteel International Economic and Trade Co., Ltd., a wholly-owned subsidiary of Baosteel, and will build Baosteel in the park. Automotive, home appliance steel processing center project. Baosteel will focus on serving automobile vehicle production and auto parts enterprises in Foshan area, meeting the needs of FAW-Volkswagen Foshan factory transshipment warehouses, providing laser welding support, and meeting the needs of its parts factory for blanking, processing shear, stamping, etc.; (Sanshui) Innovation Industrial Park, Nanhai Toshiba, Chi Mei and other home appliance manufacturers.

The project covers an area of ​​100 mu and is planned to be built in two phases with the FAW-Volkswagen Foshan factory. The project plans to design and process 150,000 tons of annual processing and distribution capacity, 5 million pieces of blanking materials, and 1 million pieces of laser welding. It is estimated that the annual sales revenue will be 975 million to 1-3 billion yuan. The first-phase project is planned to start construction in 2012 and will be put into production in January 2013.

“The Baosteel settled in the Sanshui Industrial Park, mainly due to the establishment of FAW-Volkswagen in the South China Sea,” said the person in charge of Leping Town in Sanshui. It took only three months from the negotiation to the final signing and settlement to reflect the Sanshui area. Baosteel's willingness to cooperate. Prior to this, Baosteel had four investment projects in Foshan, which were located in Chancheng and Shunde, and the Sanshui project was the largest one.