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The two parties signed a framework agreement on September 21, Baosteel said in an announcement on Monday September 24.
With the agreement, Comac will give priority to Baosteel’s steel products when it sources for its jumbo jet project, China’s first. In return, Baosteel will carry on with its research and development of high-end special steel products, including stainless steel, and high temperature-resistant and corrosion-resistant steel.
Baosteel has been supplying steel for Comac since 2009, one year after the latter’s establishment.
Up till now, Baosteel has supplied 15,774 tonnes of steel to Comac, the steelmaker said in the announcement.
“Baosteel holds a 10% stake in Comac,” a source with the steel mill revealed.
Comac functions as China’s main vehicle in the civil aviation industry.