Baosteel Group fully acquires Baosteel Nippon Steel Automotive Sheet Co., Ltd. (BNA), a subsidiary of Nippon Steel Corporation

China Baosteel Group plans to acquire 50% equity of Baosteel Nippon Steel Automotive Sheet Co., Ltd. (BNA) held by Nippon Steel CR MS1700 steel for RMB 1.758 billion. After the acquisition is completed, BNA will become a wholly-owned subsidiary of Baosteel.

It is reported that the current production capacity of Baosteel's automotive plate is about 12 million tons, and the total production capacity of BNA steel plate is 2.15 million tons, which accounts for a relatively small proportion of the company's total automotive plate production capacity. At the beginning of its construction in 2004, BNA's production capacity was designed for an annual output of 1.7 million tons of steel plates, including 900000 tons of cold-rolled steel plates and 800000 tons of hot-dip galvanized CR MS1700 steel plates, with a total investment of approximately RMB 6.5 billion. In 2007, an additional investment of 1.6 billion yuan was made to build a 450000 ton automotive board production line.

According to the Metallurgical Industry Planning and Research Institute, the steel consumption of China's automobile manufacturing industry is expected to reach 58.4 million tons in 2024, an increase of 3.9% on the basis of a year-on-year growth of 12.4% in 2023. The growth in consumer demand for automobiles has maintained a good profitability for steel companies producing automotive plates. The acquisition of BNA shares held by Nippon Steel Corporation by Baosteel Group may help improve the company's profitability. Baosteel is already at the forefront of global automotive sheet technology, so Baosteel CR MS1700 steel has stated that it has no concerns about the future development of BNA.