By creating the JV, Schmolz + Bickenbach and Tsingshan share the common ambition of further growth in the Chinese stainless long steel market. The combination of Schmolz + Bickenbach’s technical know-how with Tsingshan’s strong market position in China creates a world-class supplier of special bright bars that is able to meet the growing demand in the region.
The JV focuses on the production of a wide range of drawn bright bars with a reliable and flexible supply chain, leveraging technical expertise, operational excellence and deep customer and market knowledge of both parties. Key feedstock will comprise stainless steel wire rods from Tsingshan as well as from Schmolz + Bickenbach’s Business Units Ugitech and Deutsche Edelstahlwerke which are recognized as a global benchmark in quality and performance. Deep understanding of end-use applications coupled with a local manufacturing capability in China will allow to comprehensively delivering industry-specific value proposition to customers through this partnership. To further strengthen its leading position, Shanghai Xinzhen Precision Bar will invest in additional equipment that allows expanding the offering to higher performance steel grades.
“By partnering in drawn bar activity with highly respected Tsingshan we will establish local downstream production capability in China,” Schmolz + Bickenbach CEO Clemens Iller commented. “This marks a milestone in our efforts to better serve global customers located in China and consolidates our leading position in technical products, mainly for the Automotive and Electronics industries. Beyond that, we can address several market segments such as Industrial Equipment or Food & Beverage that offer niches with excellent growth potential.”
Mr Huang Weifeng, Vice Chairman of Tsingshan Group, said: “Tsingshan is one of the worldwide major players in the stainless steel industry and Shanghai Decent Group, the JV partner, is a member company of Tsingshan. The joint venture is an excellent example of win-win cooperation in the stainless steel industry.”
_{(Source: SCHMOLZ + BICKENBACH AG)}