Baosteel invests 500 million yuan to build steel logistics project

It is reported that with the FAW-Volkswagen layout in Foshan, the world's top 500 Baosteel Group has decided to invest in the construction of a processing center around the FAW-Volkswagen factory in Foshan to provide ancillary services to the host plant. Recently, Baosteel Group invested 500 million yuan in the construction of steel logistics processing and distribution projects, and signed a contract to settle in Sanshui Industrial Park, Foshan, Guangdong Province. It is estimated that the annual sales revenue will reach 975 to 1.3 billion yuan.

As a FAW-Volkswagen strategic partner, Baosteel has been providing FAW-Volkswagen manufacturing bases with processing and distribution services. “We can deliver our products to customers such as FAW-Volkswagen within half an hour,” said the person in charge of Baosteel Group. The new project is planned to be invested by Shanghai Baosteel International Economic and Trade Co., Ltd., a wholly-owned subsidiary of Baosteel, and Baosteel Automotive and Home Appliances Steel Processing Center will be built in the park. Baosteel focuses on service of automobile production and auto parts enterprises in Foshan area, meets FAW-Volkswagen Foshan factory transfer warehouse requirements, provides laser welding support, and meets the needs of its parts factory for blanking, processing shear, stamping, etc.; and nearby services. Haier (III) Water Innovation Industrial Park, Nanhai Toshiba, Chi Mei and other home appliance manufacturers.

Baosteel Sanshui 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 processing and delivery capacity, 5 million pieces of blanking materials, and 1 million pieces of laser welding. The first-phase project is planned to start construction in 2012 and will be put into production in January 2013.

The person in charge of Leping Township, Sanshui Town, stated that it took only 3 months from the negotiation to the final signing and settlement to reflect the willingness of both Sanshui and Baosteel 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.