Yonhap News reported that Ningbo Baoxin Stainless Steel Co, a Chinese steelmaker, said that it has signed a business cooperation agreement with South Korea's LG Electronics Co, in a bid to boost their competitiveness in the global market.
Under the deal, Ningbo Baoxin Stainless Steel and LG Electronics will strategically cooperate in developing new products and enhance their common vision and interests. Also, the deal calls for Ningbo Baoxin to supply stainless steel sheets to LG Electronics' factories in China, America, Asia and Europe.
Ningbo Baoxin said in a statement "A steady long term cooperative relationship with LG Electronics will help overcome challenges faced by both sides at a time when both stainless steel and home appliance industries witness growing competition." Currently, 70% of the stainless steel used by LG Electronics in China comes from Ningbo Baoxin.
Ningbo Baoxin, an affiliate of China's largest steel manufacturer Baoshan Iron & Steel Co, has an annual capacity of 600,000 tonnes of stainless steel.
LG Electronics is estimated to use over 150,000 tonnes of stainless steel for production of home appliance products, such as washing machines, refrigerators and microwave ovens.