Schmolz + Bickenbach, Tsingshan to Form Joint Venture in China
Schmolz + Bickenbach of Germany, a global producer of special long steel, and Tsingshan Group have formed a joint venture in China to serve the long stainless steel market in Asia. The JV, called Shanghai Xinzhen Precision Bar Co. Ltd, will be 60% owned by Schmolz + Bickenbach and 40% owned by Tsingshan. The combination of Schmolz + Bickenbach’s technical know-how with Tsingshan’s strong market position in China creates a global supplier of special bright bars able to meet growing regional demand.
Key feedstock will comprise stainless steel wire rods from Tsingshan and from Schmolz + Bickenbach’s business units Ugitech and Deutsche Edelstahlwerke. A deep understanding of end-use applications coupled with local manufacturing capability in China will allow the JV to deliver industry-specific product to customers. Shanghai Xinzhen Precision Bar will invest in additional equipment that will allow it to expand its offering to higher-performance steel grades.