Companies develop strategic steel cooperation

Since 2012, Schaeffler has increased the quantity of special steels it purchases from CPS by an average of 13% year after year to approximately 140,000 tonnes. Growth rates are also expected to be around ten 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 range of special steels from CPS. Michael Hartig, Vice President Purchasing at Schaeffler, explained: “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 US, 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 optimise 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.