To raise utility of new production capacity, China Steel Corporation has recently inked a cooperation agreement with Jianghuai Automobile Co, which requires CSC to supply 2,000 tonnes of cold rolled steel plates per month to JAC Group to create TWD 500 million in business opportunities yearly.
JAC makes a line of independently branded vehicles in China, including light, mid and heavy duty trucks, MPV, SRV, sedans, bus chasses, buses, engineering machinery, engines, gearboxes and other key components. The 40 pus year automaker is a top 10 in China and has annual capacity exceeding 700,000 vehicles and 500,000 engines.
Mr JC Tsou chairman of CAC said that JAC group recognizes CSC's production of high grade steel products for the automotive sector, hence the signing of the agreement.
Beginning in July 2011, JAC will begin procuring 2,000 tonnes of hot rolled steel products monthly from CSC, with the volume to reach over 20,000 metric tons by 2012. CSC said that it will supply hot rolled steel products to JAC Group after completing expansion of hot rolling production lines.
CSC said that its third cold rolling production has begun trial run with designed capacity of 1.5 million tonnes yearly, 1.1 million tonnes of which are mainly cold rolled steel coils and the remaining 400,000 tonnes being hot dip galvanized steel coils.
The agreement will enable CSC to add TWD 500 million to its annual sales.