ThyssenKrupp Expands Investment in China's Steel Sector

German industrial group ThyssenKrupp has agreed to buy a stake in a Chinese steel company to strengthen its position as a supplier of products to carmakers in southwestern China. Other areas in which ThyssenKrupp is experiencing strong growth and leading the market in China include slewing bearings for wind turbines, elevators and escalators for buildings and infrastructure.

ThyssenKrupp said the group is acquiring a 12.5 percent direct and 37.5 percent indirect stake in Angang Group's China block, which is building a hot-dip coated steel plant in Chongqing. ThyssenKrupp already has a joint venture with Anshan Steel Company - Angang New - ThyssenKrupp Galvanized Sheet Steel Co., Ltd (Tagal), owned by part of the ThyssenKrupp Steel Europe division.

Tagal already has a good market position in northeastern China. To strengthen its presence in other regions, the new facility will be located in close proximity to automakers in southwest China. The hot dip coating line is slated to enter service later this year and will produce high strength steels, duplex steels and hot forged aluminized grades.

The company said the agreement will allow ThyssenKrupp to further strengthen its position as an important supplier to the rapidly growing Chinese auto industry, particularly in the premium segment. In addition to high quality sheet steel, ThyssenKrupp also supplies advanced chassis and drivetrain components to shape its growth strategy. The Group has an average growth rate of about nine percent in China and increased its sales by € 2.5 billion in the 2013/14 financial year.