Aiming at the car cake Baosteel integrated parts business

Baosteel, the leading domestic steel company with a market share of more than 50% in the automotive steel plate market, has begun to exert its full force in the automotive parts and accessories sector.

A few days ago, the reporter learned from information sources that Baosteel plans to integrate the previously dispersed automotive parts and components business into a unified system to provide customers with a package solution. In April 2011, it launched a detailed plan.

According to the sources, Shanghai Baosteel International Economic and Trade Co., Ltd. ("Baosteel International"), a wholly-owned subsidiary of Baosteel Co., Ltd. ("Baosteel International") recently started to carry out assets for Baosteel Metal Co., Ltd. ("Baosteel Metal") auto parts business. Evaluation. This means that Baosteel's plan to fully enter the spare parts industry may have entered the actual operation stage.

“Baosteel's integration of auto parts business is a general trend. Because of its customer channel and raw material advantages, more and more large steel companies around the world have begun to get involved in the downstream industry of auto parts and grab a huge market cake. Prior to this, ThyssenKrupp in Germany. The Group and South Korea’s Pohang Steel have successfully extended from the traditional steel industry to other industries such as automotive parts and components.” Zhong Ye, an analyst in the automotive industry, believes that “parts investment or another large-scale steel company's investment focus.”

"Recently, Baosteel International has already conducted an asset assessment of Baosteel's auto parts business. The leadership has decided to take Baosteel's auto parts business back to Baosteel International, which is mainly responsible for steel trading and processing. Prior to this, Baosteel International had Some of the plates are geared to automotive users. Baosteel Metals has a part of its business for automotive users. Now it is integrating Baosteel's automotive customers' business into a supply chain, and it is categorized as a system from R&D, steel sales, processing services to parts manufacturing. Car users," said an insider of Baosteel, who declined to be named.

However, when the reporter called Baosteel Group Public Relations related parties, the other party said that they were not yet aware.

“Baosteel has gained market access and raw material advantages from entering the auto parts industry from the outset. It is like eating a dish in the past. Extending the product to the auto parts business will not increase the cost of developing customers.” .

However, relevant parties believe that Baosteel's main business is still based on steel. According to Baosteel's talent incentive mechanism, it is difficult to make the parts business sector the forefront of the industry, and now more and more foreign-funded parts and components companies join the domestic market. Competition has also increased the difficulty for Baosteel to develop its parts and components business. “Now the current status of the domestic auto parts industry is that technology-intensive parts are monopolized by foreign capital, and domestic parts and components companies mostly only make labor-intensive mechanical parts. The gap between domestic companies is mainly in research and development. Baosteel needs to put automotive parts and components. Supply and branding must increase the research and development capabilities." Analysis of the industry.

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