(Yicai) Aug. 9 -- Baoshan Iron & Steel and Baowu Aluminum Technology, under steel giant China Baowu Steel Group, and Japan's Kobe Steel have reportedly inked a deal to establish a joint venture to produce aluminum body panels for Chinese carmakers.

Kobe will hold a 50 percent stake in Kobelco Baosteel Automotive Aluminum Rolled Products Shanghai, with Baoshan Iron and Baowu Aluminum owning the rest, the Paper reported yesterday, citing a deal the three signed in Japan on the same day. The JV's registered capital will be about CNY900 million (USD125.4 million).

Based on the trio's respective production, technology, and marketing advantages, they will build a high-quality production system of aluminum panel materials applied to car bodies, expand the diversified materials' layout of the JV's SMARTeX new energy vehicle total solution, and enhance Baowu Steel's capability in providing a comprehensive 'iron and steel plus advanced materials' solution, Baoshan Iron noted.

Auto output and sales in China rose last year, with multiple figures hitting record highs, according to data from the China Association of Automobile Manufacturers. Sales will likely jump over 3 percent to 31 million units this year from the prior one.

Global car sales also surged 29 percent to new records in 2023, with great room for improvement in the European and North American markets, data from Germany's Center of Automotive Management showed.

Kobe Steel is a leading supplier of aluminum panels and boasts great strengths in researching and developing technologies for high-end aluminum exterior auto body panels and covering parts. It has many customers in China and Japan.

Established in 2011, Sanmenxia-based Baowu Aluminum has full-process manufacturing systems, including melt casting, hot rolling, cold rolling, annealing, and finishing. It also significantly contributes to Baowu Steel's expansion towards the new materials sector.

Shanghai-based Baoshan Iron is a globally leading modernized iron and steel company.

Editor: Martin Kadiev