Foton Motor, steelmaker ink mutual sourcing deal

Beiqi Foton Motor, a commercial vehicle subsidiary of Beijing Auto, has recently signed an agreement for wide-ranging strategic cooperation with steelmaker Shougang Group and Beijing Rural Commercial Bank.

Meanwhile, Beiqi Foton and Beijing city's auto giant Shougang Group inked a deal to purchase steel products and vehicles from each other, xinhuanet.com reported.

The mutual sourcing deal said that Shougang's purchasing networks will cover procurements of Foton-made light-duty trucks, medium- and heavy-duty trucks, engineering vehicles, medium- and large-sized buses and coaches. Under same conditions, Shougang will purchase Foton's vehicle models as the first choice.

In return, Foton Motor will first choose steel products and other auto-parts and accessories produced by Shougang. Sources said Foton will at first buy 1,000 tons of special steels used for vehicle manufacturing.

Beijing Rural Commercial Bank will open credit green channel and grant more favorable financing to the automaker. The bank will offer individually tailored financial planning and related consulting services for Foton Motor.

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