China’s Dongfeng Motor Corp. has signed a strategic cooperation agreement with Shanghai Baosteel Group Co., Dow Jones said, citing the official Xinhua News Agency.
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The two companies will cooperate in areas including steel supply, logistics management and vehicle sales, the reports said.
Dow Jones noted that Dongfeng Motor Corp., the parent company of Dongfeng Automobile Co. Ltd. , is one of China’s three largest vehicle producers and has joint ventures with Nissan, Kia and PSA Peugeot Citroen.
The deal is a sign of how explosive growth in China’s automotive industry is spurring industrial alliances to help ensure the security of key manufacturing supplies, Dow Jones said.
According to Dow Jones, the Xinhua report said China’s automotive boom has made automotive steel sheet Shanghai Baosteel’s most important strategic product.
