ThyssenKrupp continues to partner with Ansteel for galvanized products

ThyssenKrupp and Ansteel decided to build a new hot-dip galvanizing line in China. Ansteel and ThyssenKrupp have formed a joint venture to build a new production line to develop high-end automotive steels. The joint venture will manufacture galvanized products in Chongqing. The two companies have already set up $ 180 million zinc plating lines in China, serving car and home appliance manufacturers at home and abroad.

The German multinational company ThyssenKrupp this year acquired a stake in a subsidiary of the Chinese steel giant Anshan Steel Corp. (Ansteel). ThyssenKrupp will hold a 12.5 percent stake and indirectly another 37.5 percent in a Chinese firm that is building a galvanizing line in Chongqing, southwest China. ThyssenKrupp and Ansteel signed a strategic cooperation agreement on October 30, 2014.

This is the second project between Thyssen Krupp and Ansteel. The first took place in 2002-2003, when the two companies formed the Tagal joint venture (50:50), which is working on two hot-dip galvanizing lines in China. As reported earlier, Tagal has 37.5 percent of the shares in the subsidiary, which makes the largest German manufacturer in general the owner of a controlling stake. Thyssen Krupp has shown strong growth in its business in China, which was 9 percent over the past year. The company's annual revenue from market sales reached 2.5 billion euros in the 2013/2014 financial year.

For Thyssen Krupp, joint projects are an important part of its strategy to expand its presence in target markets through the creation of local hot-dip galvanizing lines. By partnering with leading Chinese steelmakers like Ansteel, Thyssen Krupp is able to serve customers in the automotive sector globally. In turn, Ansteel, by investing in advanced technology, expands its production of high added value steel and gains experience in servicing international car manufacturers.