OREANDA-NEWS. November 07, 2011. Ningbo Baoxin has  signed  a strategic cooperation agreement with South Korean LG Electronics. According to the agreement,  the two sides will promote  the cooperation of  supply to the LG electronics production base in China to its global production base, cooperate to develop new products and expand further the advantages in competition to meet with hand in hand the changes on the market and to realize better common development, reported the press-centre of Baosteel.

LG Electronics is the third largest domestic appliance manufecturer on the world, and has its production base in America, Asia and Europe. The annual demand for steel is over 1 million tons, among which stainless steel amounts to  150, 000 tons. LG Electronics has two proiduction in Nanjing and Tianjin in China, producing mainly the washing machine and the microwave oven. In the past, stainless steel material used by the production base in China mainly is imported. With fierce competition in white domestic appliance line,  LG Electronics started  global integrated procurement with the aim to find high quality steel supplier in globe. 

Through the following up and the investegtion in early stage starting from last year, in cooperation with  Stainless Steel Business Department and Baosteel International, the marketing personnel from Ningbo Baoxin and Shanghai Stainless Steel took Nanjing LG washing machine factory as a breakthrough, and made a full play of the advantages on production of the thin materal from Ningbo Baoxin and the advantages on  shear processing and distribution, succeeded in accomplishing of batch supplying of the material for products used in manufacture of barrels for washing machine and inner wall of microwave oven. The strict authentication by user has proved that both surface quality and stamping performance of stainless steel products  from Baosteel are superior than that of the imported. Meanwhile, according to the requirements from LG Electronics on global integration of procurement, Baosteel's products  has passed successively through the strict sample authentication in Poland, India, Thailand, South Korea's LG washing machine factory.  At present,  70% of the stainless steel material used by the factory of LG Electronics in China is from Baosteel.

Setting up steady long-term cooperation relations with between Ningbo Baoxin and LG Electronics  is a measure of pulling together and endeavouring to overcome difficulties taken by both sides this time under the condition that competition in both stainless steel and home appliance  line comes fiercing.  A part from steady supplying of material, two sides will enhance cooperation in developing new products and improve the competitiveness of both enterprises.