SCHMOLZ + BICKENBACH, a global leader in special long steel, and TSINGSHAN GROUP ("TSINGSHAN"), a world leader in stainless steel, today announced the formation of a Joint Venture ("JV") in China. The JV company is 60 percent owned by SCHMOLZ + BICKENBACH and 40 percent by TSINGSHAN and will operate under the name Shanghai Xinzhen Precision Bar Co. Ltd. out of Shanghai (China).

By creating the JV, SCHMOLZ + BICKENBACH and TSINGSHAN share the common ambition of further growth in the Chinese stainless long steel market. The combination of SCHMOLZ + BICKENBACH's technical know-how with TSINGSHAN's strong market position in China creates a world-class supplier of special bright bars that is able to meet the growing demand in the region.

The JV focuses on the production of a wide range of drawn bright bars with a reliable and flexible supply chain, leveraging technical expertise, operational excellence and deep customer and market knowledge of both parties. Key feedstock will comprise stainless steel wire rods from TSINGSHAN as well as from SCHMOLZ + BICKENBACH's Business Units Ugitech and Deutsche Edelstahlwerke which are recognized as a global benchmark in quality and performance. Deep understanding of end-use applications coupled with a local manufacturing capability in China will allow to comprehensively delivering industry-specific value proposition to customers through this partnership. To further strengthen its leading position, Shanghai Xinzhen Precision Barwill invest in additional equipment that allows expanding the offering to higher performance steel grades.

"By partnering in drawn bar activity with highly respected TSINGSHAN we will establish local downstream production capability in China," SCHMOLZ + BICKENBACH CEO Clemens Iller commented. "This marks a milestone in our efforts to better serve global customers located in China and consolidates our leading position in technical products, mainly for the Automotive and Electronics industries. Beyond that, we can address several market segments such as Industrial Equipment or Food & Beverage that offer niches with excellent growth potential."

Mr Huang Weifeng, Vice Chairman of TSINGSHAN GROUP, said: "TSINGSHAN is one of the worldwide major players in the stainless steel industry and Shanghai Decent Group, the JV partner, is a member company of TSINGSHAN. The joint venture is an excellent example of win-win cooperation in the stainless steel industry."

TSINGSHAN is a global leader endeavor to the excellence operation of complete stainless steel production chain with more than 26'000 employees. It currently operates a bar drawing facility in Shanghai under the name Shanghai Xinzhen Special Steel Co. Ltd. SCHMOLZ + BICKENBACH is a leading global producer, processor and distributor of special long steel products, operating with a global sales and services network in an attractive niche market. It enjoys strong customer relationships globally in various application industries and an extensive international footprint. This partnership will help to further consolidate its existing strong presence in Chinese markets.

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