Schmolz + Bickenbach has formed a joint venture with Tsingshan Group to distribute specialty steel long products to manufacturers in China, especially those in the automotive and electronics industries, as well as those supply products to the industrial equipment or food-and-beverage processing sectors.
The materials to be processed and distributed will be mainly stainless steel wire rods supplied by Tsingshan, but also by Schmolz + Bickenbach’s Ugitech and Deutsche Edelstahlwerke operating units.
“Deep understanding of end-use applications coupled with a local manufacturing capability in China” will make it possible for the venture to deliver a comprehensive, industry-specific value proposition to Chinese manufacturing customers, according to S+B’s announcement. The new company will invest in additional equipment that allows to expand its production capabilities to include higher performance steel grades.
The Shanghai-based venture, called Shanghai Xinzhen Precision Bar Co. Ltd., will be 60% owned by S+B, which is one of the world’s largest manufacturers of tool steel, non-corrosive long steel, alloyed and high-alloyed constructional steel.
The other 40% share is held by Tsingshan, a major Chines producer and process of stainless steels, including a bar drawing operation in Shanghai, called Shanghai Xinzhen Special Steel Co. Ltd.
“By partnering in drawn bar activity with highly respected Tsingshan we will establish local downstream production capability in China,” S+B CEO Clemens Iller stated. “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.”