“In conjunction with Schaeffler, CPS is hoping to develop innovative materials and continuously optimize its manufacturing and logistics costs for rolling bearing steels. Improved risk control is also one of the objectives of the strategic partnership,” the companies said in a statement.  

The partnership advances an existing commercial relationship between the two – Pacific Special Steel has been supplying Schaeffler directly for 13 years and also sells to more than 50 Schaeffler suppliers. Pacific Special Steel is China’s largest producer of special steels. 

In a statement, the companies said Schaeffler currently buys about 140,000 tons annually from Pacific Special Steel. That figure is expected to grow as Schaeffler prepares to open a new production plant in Xiangtan, China, late next year. 

“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, Schaeffler’s chief operating officer. 

At the same time, the steelmaker is looking to increase sales in overseas markets, such as Korea, Japan, the U.S. southeast Asia and the European Union.  

You can read the full announcement here.