Shougang Cent (00103) has announced the signing of a cooperation intention agreement with Hong Kong Beauty Realm Europe M&A Fund (Phase I) Limited (Beauty Realm Capital), marking a strategic move to establish a joint venture. The partnership aims to leverage complementary strengths in the tire reinforcement materials sector and jointly expand the global industrial rayon product market.

Beauty Realm Capital is noted as the controlling shareholder of Cordenka GmbH & Co. KG (Cordenka), a German company recognized as a leading global manufacturer of industrial rayon, which serves as a high-performance tire casing reinforcement material. The group has long been deeply involved in the steel cord segment and, like Cordenka, is a major supplier of tire reinforcement materials. The two entities share highly overlapping customer bases and exhibit notable business complementarity.

Upon the establishment of the joint venture, both parties will integrate their product lines and customer resources, aiming to further elevate their influence and brand presence within the global tire supply chain. Additionally, the two companies are highly aligned in their commitment to sustainable development. The group continues to increase the proportion of ultra-high strength (ST) and special ultra-high strength (UT) steel cord products, while its next-generation mega-high strength (MT) products are gradually being introduced to the market. The group has also achieved mass supply of products containing over 70% recycled steel content.

Cordenka's industrial rayon is produced from wood pulp as a raw material, resulting in a lower carbon footprint compared to traditional petrochemical materials. This aligns well with the low-carbon and circular economy requirements of vehicle manufacturers and tire producers. This collaboration is expected to further drive synergistic advancements in sustainable development for both parties.