ThyssenKrupp Steel Europe invests in China
Thyssenkrupp Steel Europe is making a major contribution to the production of lightweight and steel design wheels for the Chinese vehicle industry. A joint venture with manufacturers Jingu and Ansteel plans to produce millions of products.5 Jul 2018 David Schahinian
Given the green light of the Chinese competition authorities, the steel wheel manufacturer Jingu will become the majority shareholder of the joint venture with 51%. Thyssenkrupp will acquire a 34% stake and steelmaker Ansteel 15%. Above all, the German partner will contribute the technological know-how for the development of innovative products. The expertise in the fields of hot forming and lightweight construction had been a decisive reason for the Chinese partners to choose ThyssenKrupp, the company reports.
Ansteel will ensure the supply of primary material for wheel production. This is no new unfamiliar partner for the Germans. Both companies have been producing fire-coated sheets for the Chinese automotive market since 2002 through their Tagal joint venture. The Chinese leading steel wheel manufacturer, Jingu, has modern research and testing facilities. Production figures in the “low single-digit million range” are to be achieved in the medium term. In addition, an e-commerce platform is planned for distribution.
The Chinese market will become even more attractive for German car manufacturers in the future. In April, the China National Development and Reform Commission announced that the limits on foreign ownership will be phased out . So far, foreign automakers in China have been allowed to operate only through joint ventures in which they could hold no more than half of the shares. The limit in the area of electric cars and special vehicles will be eliminated this year. It will be repealed in 2020 for commercial vehicles and for passenger cars in 2022.
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