Bao Steel, a state-owned business of China and the 4th largest in the world, opened an automobile steel plate factory in Seokpo-ri, Jangan-myeon, Hwaseong-gun, Gyeonggi Province as a joint venture with GNS, a domestic SME.

On September 26, Gyeonggi Vice Governor for Economy Nam Chung-hee attended the ceremony for the completion of work for the Hwaseong Factory of BGM, including Kim Chang-gyu, Head of International Trade Policy Division, MOTIE, Nam Gi-yeon, Head of Economy & Industry Bureau, Hwaseong City, Zhang Xinsen, Chinese Ambassador to Korea, Bao Steel President He Wenbo, GNS Chairman Gong Byeong-chae, and GM Korea Senior Managing Director Bang Seon-il.

BGM is a joint venture established by SBGC, a subsidiary of Bao Steel, Bohwa, and GNS.

In April 2012, the Gyeonggi Provincial Office signed an MOU with Bao Steel and GNS for the attraction of investment amounting to KRW 26 billion.  

Bao Steel has supplied automobile steel plate to GM Korea since 2008. GNS is GM Korea’s major subcontractor. According to business observers, the joint venture is an example of win-win efforts made between a large-sized business and an SME (i.e., Bao Steel and subcontractor of GM Korea).

The Gyeonggi Provincial Office expects the presence of Bao Steel in the country to help domestic SMEs enjoy cheaper steel plates through the price competition in the domestic steel material market.

In his congratulatory speech, Mr. Nam Chung-hee noted that the willingness of a foreign business to establish a joint venture with a domestic SME shows its trust in the technological prowess of domestic SMEs. “We hope that this will serve as momentum for brisker collaboration between large-sized businesses and SMEs,” he said.

For his part, Bao Steel President He Wenbo said they are deeply grateful for the administrative support provided by the Gyeonggi Provincial Office and Hwaseong City. “This is our first investment in South Korea, and we will fulfill our responsibility as a member of the community and observe the local regulations faithfully,” he said.
GNS Chairman Gong Byeong-chae expressed his gratitude for the full support provided by GM Korea for the joint venture and vowed that his company would work hard to be successful in the business based on mutual trust by both businesses of the two countries.

Established in 1977 in Shanghai, Bao Steel is no. 1 among iron & steel businesses as a state-run business. As of 2010, it had total assets of KRW 77 trillion and 120,000 employees.