New Cooperation on Steel

Schaeffler and CITIC Pacific Special Steel (CPS) agree strategic partnership

(PresseBox) (Herzogenaurach, ) A promising, strategic partnership has been signed by Oliver Jung, Chief Operating Officer of Schaeffler AG, and Qian Gang, CEO of the steel manufacturer CPS. The two companies want to strengthen their business relationship both economically and technologically.

The Chinese CITIC Pacific Special Steel Group is China’s largest manufacturer of special steel. Schaeffler is one of the largest globally active automotive and industrial suppliers of precision components and systems for engines, transmissions, chassis applications, and rolling and plain bearing solutions. CPS has been a Schaeffler supplier for 13 years. The company primarily supplies the Chinese market, including the 13 Schaeffler production plants in China and the Asia Pacific region, but also locations in the USA and Europe. In addition, CPS supplies more than 50 Schaeffler suppliers with increasing annual growth rates. Since 2012, Schaeffler has increased the quantity of special steels it purchases from CPS by an average of 13 percent year after year to approximately 140,000 tons. Growth rates are also expected to be around 10 percent during the next few years. The Schaeffler Group is also planning a new production location in Xiangtan, China as expansion at the existing locations has reached its limits. Initial operation of the plant that will produce automobile parts and precision bearings is planned for the end of 2018.

“In view of Schaeffler’s future development and global course for growth, it is important that we not only strengthen the business relationship with our long-standing partner, but also extend it along the entire value added and supply chain in a sustainable manner”, said Oliver Jung, Chief Operating Officer. The automotive and industrial supplier, Schaeffler, receives a wide range of special steels from CPS. Michael Hartig, Vice President Purchasing at Schaeffler, explains: “We are very interested in premium-quality steels. We particularly value the delivery performance and outstanding quality provided by our partner CPS. We now wish to intensify the exchange about material requirements and the joint development of materials in the interests of both companies.”

CPS management would like to increase sales in overseas markets such as Korea, Japan, the USA, Southeast Asia and the EU. CPS excels with its well-established chain of production plants strategically located on the Yangtze River and the latest manufacturing technology. In conjunction with Schaeffler, CPS is hoping to develop innovative materials and continuously optimize its manufacturing and logistics costs for rolling bearing steels. Improved risk control is also one of the objectives of the strategic partnership. CPS CEO Qian Gang and Schaeffler’s Member of the Board of Managing Directors Oliver Jung say the strategic partnership is a win-win situation.

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Schaeffler AG

The Schaeffler Group is a globally active automotive and industrial supplier. Highest quality, outstanding technology, and strong innovative ability represent the basis for the Schaeffler Group's lasting success. Its precision components and systems for engines, transmissions, and chassis as well as rolling and plain bearing solutions for numerous industrial applications make the Schaeffler Group a key contributor to "Mobility for tomorrow". The technology company generated sales of approximately 13.3 billion euros in 2016. With around 86,600 employees, Schaeffler is one of the world's largest companies in family ownership. It has a worldwide network of manufacturing locations, research and development facilities, and sales companies at approximately 170 locations in over 50 countries.

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