The Group has entered into an in-depth strategic partnership with a leading South Korean new energy vehicle enterprise, establishing a new paradigm for cross-border high-end material supply. Recently, the Group headquarters hosted a significant signing ceremony. The Chairman and General Manager of the Group, along with a delegation led by Division Head Choi Dong-hoon, an important partner in South Korea’s new energy vehicle sector, signed a five-year long-term supply agreement, marking a new phase in the strategic collaboration between the two parties.
This signing is the culmination of a three-day in-depth exchange and on-site inspection by Division Head Choi Dong-hoon and his technical team. Accompanied by the Group’s Deputy General Manager and Chief Technology Officer Wang Jianjun, the visiting delegation thoroughly toured the Group’s newly commissioned third-generation ultra-high-strength steel continuous annealing production line, intelligent galvanizing production line, and the national-level material testing center, gaining a comprehensive understanding of the Group’s robust capabilities in material R&D and intelligent manufacturing.
The technical team spoke highly of the Group’s environmentally friendly galvanizing line and optical surface quality inspection system, specifically built for new energy vehicles. Division Head Choi Dong-hoon showed particular interest in the Group’s just-in-time production logistics dispatch center. Upon learning that the Group can achieve minute-level synchronization with automakers’ production plans through AI algorithms, he praised, “This is precisely the core capability needed for building a ‘zero-inventory’ supply chain system.”
From production lines to laboratories, and from quality control to logistics coordination, the three-day, fully transparent inspection of the entire process not only deepened mutual understanding but also completely dispelled the client’s concerns about remote supply chain collaboration, laying a solid foundation for long-term, in-depth cooperation. In terms of both demand scale and collaboration depth, this agreement represents a new breakthrough in the Group’s cooperation with international high-end clients.
As agreed, in the first year of cooperation, the client’s annual benchmark procurement of the Group’s high-end automotive steel sheets will reach 20,000 tons. This includes approximately 10,000 tons of ultra-high-strength steel graded at 1500MPa and above for body safety structural components, and about 15,000 tons of O5-grade high-surface galvanized sheets for exterior panels. Notably, as the client launches multiple new platform models over the next two years, related procurement demands are expected to multiply, providing a stable and high-quality market channel for the Group’s high-end production capacity.
Departing from the traditional scattered order model, the two parties have innovatively established a “weekly cycle supply” precision collaboration system. The Group will dynamically deliver materials based on the client’s rolling production plan, with a quarterly benchmark of approximately 3,000 tons, and flexibly adjust material specifications and strength online. This model significantly alleviates the client’s inventory pressure while also placing higher demands on the Group’s production flexibility, intelligent scheduling, and logistics precision. The Group commits to achieving a comprehensive product qualification rate (covering performance, dimensions, and surface quality) of 99.9%. Consistent quarterly compliance may also earn the client’s “quality premium” incentive—a profound trust and a driving force for continuous progress.
In the areas of data sharing and green, low-carbon initiatives, in active response to the global carbon neutrality initiative, the Group will provide a third-party-verified lifecycle carbon footprint report for each batch of delivered steel, covering carbon emission data from smelting to rolling. Simultaneously, leveraging its experience in green certification, the Group will assist in applying for internationally authoritative green product certifications for vehicles manufactured using these materials, helping partners enhance their environmental competitiveness in the global market.
On the day of the signing, the first batch of 2,500 tons of high-surface galvanized sheets produced under the new cooperation model was successfully rolled off the production line at the Group’s smart factory. This batch of materials will be shipped from Qingdao Port to Incheon Port, South Korea, early next week, precisely arriving at the client’s production line. This resounding commitment, spanning mountains and seas, has already translated into tangible action, driving both parties forward in sync on the path of high-end manufacturing for a mutually beneficial future. We firmly believe that with trust as the foundation and innovation as the wings, this collaborative journey will grow broader and broader, jointly creating more promising and groundbreaking achievements.
