A Chinese-German Joint Venture For High-Quality Products

On September 13th, 1996, ThyssenKrupp and Angang Group evaluated the prospects of HDG products and the ways of working together in the expanding Chinese steel market. Both companies therefore agreed to found a joint venture to set up a state-of-the-art hot-dip galvanizing line which focused mainly on the supply of highest-quality products. A key aspect in this joint venture is the continuous transfer of know-how from Thyssenkrupp Steel Europe AG for the hot-dip galvanizing process to TAGAL.

The joint venture contract was signed in February 2001 and the total investment was 180 million USD. The total capacity for the line was estimated at 400,000 tons per year.

It was decided to build the line in the city of Dalian as the environment for business is one of the best in north-east China. Dalian is also an excellent location for the logistics of raw material from ANSTEEL and Thyssenkrupp Steel Europe AG as well as the finished products to major customers both at home and abroad.

In February 2002 the business license was issued to TAGAL and an official foundation ceremony was held in May 2002. The first coil was produced on December 4th, 2003, followed by a grand opening ceremony on June 4th, 2004.

Due to the great success of TAGAL, Thyssenkrupp Steel Europe AG and ANSTEEL decided to extend the capacity on the existing site in Dalian. The new high-tech line will cost 150 million USD, equally invested by both shareholders; the start of operation was on Dec. 4, 2008 with its first coil off-line.

TAGAL produced 740,000 tons of hot-dip galvanized steel sheets for the automotive and appliance industry by the end of 2010 with a staff of 276 employees.

The attractive and unique colour design of both plant buildings was inspired by industrial designer Friedrich-Ernst v. Garnier and received the Chinese award for the best industry building in 2004