Automobile steel is stored in coils, ready to be shipped. It was produced by Baogang Steel Co. [Photo/Baotou Daily]

Baogang Steel Co is to supply its S420MC hot-rolled, high-strength and low-alloy automotive structural steel to Germany's Benteler International AG, in the wake of a major sales contract signed recently, according to a report in the Baotou Daily.

This marks the first time that Baogang Steel Co, a subsidiary established by giant steel producer Baogang Group in Chengdu, capital city of Southwest China's Sichuan province has supplied auto steel to a Fortune 500 auto parts company.

Benteler International AG is one of the major suppliers of auto parts in the world, producing support products for most of the world's auto manufacturers.

Since its official operation in May 2020, the Baogang Group subsidiary is understood to have been actively exploring the market.

It has become an original equipment manufacturer or OEM, for other major commercial ventures. An OEM is defined as a company whose goods are used as components in the products of another company, which then sells the finished item to users. 

The companies it has supplied include Chengdu Dayun Automobile and Yunnei Power, in a move that has further expanded the direct sales ratio of Baogang Group's auto steel operations.