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China's steel giant Shanghai Baosteel Group Company said it has signed a deal on strategic cooperation with Dongfeng Motor Corp., one of the country's three biggest automakers, over the weekend.

The move came after Baosteel signed similar deals with the First Automobile Works Group (FAW) and Shanghai Automotive Industry Corp, the other two auto giants in China.

Under the latest deal, Baosteel and Dongfeng will cooperate on steel supply, technological development, steel and auto parts processing, logistics management, enterprise administration, and auto sales.

Baosteel will set up a sales and service center in Wuhan, capital of Hubei Province, where the headquarters of Dongfeng is located, according to the deal.

A senior manager with Baosteel, said auto steel sheet has become the company's most important strategic product thanks to fast development of the country's auto sector.

Baosteel said strategic cooperation with auto giants is vital for the steel giant to maintain its market position on the Chinese market in the long run.

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