Recently, Beijing Shougang., Co. Ltd. was awarded "Special Contribution Award" at BYD's 2022 annual conference of new energy vehicle (NEV) core supplier. BYD has fully affirmed Shougang's outstanding performance in "quality, cost, delivery, R&D and service", especially in boosting production and guaranteeing BYD's production and supply during the pandemic. Shougang was the only steelmaker to receive the honor, standing out from 250 shortlisted core suppliers.

The cooperation between BYD and Shougang started in 2010. Over the years, Shougang has actively practiced the concept of green and low-carbon development, seized the opportunities to rapidly increase the production of NEVs, and continuously deepened the partnership with BYD. In 2022, the order volume increased by more than five times year-on-year, the share of supplies continuously increased, and Shougang supplied materials to all of BYD's bases, steel-consuming sectors and varieties.

Shougang has given full play to the advantages of collaboration to support customers. In view of BYD's numerous new bases and new models and rapid increase in production, the marketing center and production base of Shougang have organized special meetings for many times, making unified deployment in such aspects as production-marketing coordination, collaboration among regional companies, purchase and sale business models, human resources, warehousing and resource processing & distribution. Shougang has fully exploited the advantages of collaboration of the marketing system and integration of the whole industry chain, and explored and practiced the "agile, efficient and orderly" integrated service system. The efficient operation of Shougang's three production bases, together with six functional departments of the marketing center, four regional companies and more than 10 processing centers, has ensured the smooth and stable production of BYD.

Shougang has focused on changes in customer demand to ensure the quality and accuracy of services. Shandong Steel Trading Company established a special working group for the BYD project to keep track of the daily supply requirement of BYD's eight bases, adapt closely to the changes of customers' production, refine measures and carry out work as planned, so that production, logistics, processing, distribution, service and so on were closely linked. Since this year, Shougang has coordinated 23 cases of emergency supply support for BYD. The manufacturing base has actively exploited the advantages of products on lines of Shougang, so as to meet the delivery demand of BYD on a full-time basis, effectively ensuring the monthly delivery rate of over 90%. All regional companies and processing centers of the marketing center have played a leading role, adopted targeted policies and provided full support for warehousing, processing, logistics, distribution and 24-hour on-site service, opened up the last key link in serving customers, and has been praised by users many times.

Since the beginning of this year, Shougang's new energy service team, with joint efforts, has made seamless connection with BYD and ensured uninterrupted supplied, when bases of BYD rapidly increased production. The emergency delivery of several models' materials for mold testing was organized in an orderly manner to support the new car project. The new blanking molds for new car models in the new bases passed the acceptance check at once, ensuring the rapid development of new bases of BYD; that is, the target output was achieved as soon as the new bases were put into operation. Faced with the shortage of materials from other suppliers during the pandemic, Shougang's service team, adhering to a "customer-centric" approach, met the urgent needs of Changsha base and Changzhou base by efficiently coordinating and organizing the internal and external resources, so that more than 2,000 tons of outer plate materials were delivered in the whole process in only ten days, thus solving the pressing needs of customers. Therefore, BYD's procurement center, Changsha base and other units have repeatedly called and wrote letters to express their gratitude.

The pandemic broke out in Zhuzhou on November 2nd, and the area where Shougang Zhuzhou Processing Center is located was listed as a high-risk area. However, Shougang's inventory for BYD's Changsha base was in this area, putting supply security at great risk. After hearing the news, the marketing system responded quickly, immediately launched the emergency supply plan, and established a mechanism for ensuring supply through coordination among multiple areas and departments on the premise of strictly implementing the pandemic prevention and control requirements. All personnel of Zhuzhou Processing Center stayed in the factory and actively organized production. However, most local truck drivers in Zhuzhou were stuck in the high-risk area, unable to transport materials to Changsha, making transport difficult. Therefore, in order to complete the task of transporting nearly 8 carloads of materials every day, Shandong Steel Trading Company and Wuhan Steel Trading Company immediately looked for new transportation resources in Changsha and Xiangtan, and used a total of more than 50 trucks to transport day and night, thus ensuring the smooth flow of materials along the 40-kilometers route every day. Special personnel were assigned to track the vehicles around the clock until they arrived at the BYD factory and finished unloading. Shougang's service team has immediately searched for resources with appropriate specifications, urgently organized hundreds of tons of materials to be trucked to Changsha for backup, and always optimized the delivery date of materials in production to create conditions for early delivery. Shandong Steel Trading Company and Wuhan Steel Trading Company quickly signed processing agreements with laser blanking factories in Tianjin, Rizhao and Shanghai, and six processing centers in Wuhan and Changsha, reviewed the drawings, approved the processing instructions, and formulated alternative processing plans. Over the past 12 days, all departments of Shougang's service team have cooperated efficiently, overcome such difficulties as obstructed logistics, shortage of drivers and materials, complicated processing methods and many delivery locations, and delivered thousands of tons of materials on time to BYD's Changsha base. This has avoided the risk of material supply disruption for any parts in production, burnishing the good reputation of "Shougang Service".