Recently Baosteel Metals Co., Ltd., Beijing Automobile Co., Ltd. and Beijing Amgain Magnesium Science & Technology Co., Ltd. jointly signed a Strategic Cooperation Agreement in which the parties will integrate their resources in technology, marketing and production to fully utilize their respective comparative advantages. The companies’ ultimate goal is to form a cooperative relationship characterized by strategic recognition, complementary advantages, synergetic collaboration and win-win scenarios. The three companies intend to jointly invest in a new company, Shanghai Baoyun Lightweight Materials Technology Co., Ltd. (incorporated in the Shanghai Free Trade Zone on July 14^th, 2015) and develop it into a leading enterprise in the magnesium ally industry. As legal counsel for Baosteel Metals, W&B lawyers provided legal services such as drafting and revision of the Strategic Cooperation Agreement, the Joint Venture Contract and the joint venture Articles of Association. W&B lawyers also offered advice on important issues such as the conditions for joint ventures, procedural rules and exit mechanisms, thereby greatly enhancing the success of the three companies’ cooperation. W&B also helped Baosteel Group enter the magnesium alloy industry for the purpose of implementing its strategic objective known as “from steel to materials”.

   While Baosteel Group adheres to its goal of affirmative development in the iron and steel industry and diversified development in other industries, this project is one of the investment and M&A transactions that W&B lawyers have successfully represented for Baosteel Group and its subsidiaries. It is also one of several cases in which W&B lawyers assisted large state-owned enterprise in industrial investment activities.