Automotive steel produced by Baogang Group has been used in Volkswagen cars made in Germany, according to local media reports.

EMW Steel and Carl Spaeter AG are the two largest metal sheet cutting companies based in Germany.

They provide automotive sheet materials to world-class automotive companies such as Mercedes-Benz, BMW, and Volkswagen. The two companies are Baogang Group’s target customers in the European market.

A company spokesman said Baogang’s Rare Earth Steel Sheet Factory has the world's most advanced steel rolling production line and its important equipment comes from German groups SMS and Siemens.

According to statistics, in recent years, Baotou Steel imported German equipment worth a total of 3.4 billion yuan ($483 million), which prepared Baogang Group with the basic conditions for producing world-class sheet material.

Established in 1954 and based in Baotou, in North China’s Inner Mongolia autonomous region, Baogang Group is the largest steel company based in the region.

It is one of the oldest iron and steel manufacturers in China and has a major plant located in Baotou. It is also the country’s biggest scientific research and production center for rare earth metals.

In recent years, Baogang Group has been strengthening its ties with neighboring countries and increasing exports to 65 countries and regions, including 56 involved in the Belt and Road Initiative.