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Foton Motor, steelmaker ink mutual sourcing deal

Shanghai, May 27 ( 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, 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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