Baosteel Sets Foot in Central Asia: Uzbekistan Representative Office Inaugurated

On September 24, 2025, Baoshan Iron & Steel Co., Ltd. (Baosteel) officially inaugurated its representative office in Tashkent, Uzbekistan, marking a significant step in the company’s global strategy to deepen its presence in Central Asia’s key markets. The ceremony was attended by Baosteel’s General Manager Liu Baojun and Davron Khidoyatov, Vice Chairman of Uzbekistan Automotive Group (UzAuto), highlighting the strategic partnership aimed at strengthening collaboration in the automotive steel supply chain and expanding influence across emerging Central Asian markets.

​1. Strategic Background: Why Uzbekistan Became Baosteel’s Central Asian Hub​

​Market Potential and Geographical Advantages​

Uzbekistan has emerged as a critical hub due to its growing automotive industry and strategic location as a transportation nexus in Central Asia. The country’s ongoing industrialization and privatization reforms, including UzAuto’s efforts to boost local part production, are expected to drive steady annual growth in steel demand. Baosteel’s move aligns with Uzbekistan’s push to localize auto components, creating long-term procurement opportunities.

​Synergy with the Belt and Road Initiative (BRI)​​

The representative office explicitly supports China’s BRI, enabling Baosteel to leverage technical support and cost-efficient solutions to secure key clients like UzAuto. This presence also facilitates exploration of downstream sectors such as mining and machinery, where demand for high-strength and wear-resistant steel is rising. By integrating with existing logistics networks (e.g., China-Europe Railway Express), Baosteel can reduce supply chain costs and improve response efficiency.

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​2. Technology Enablement: Integrating Products and Services to Capture Markets​

​Customized Material Solutions​

Baosteel aims to provide UzAuto with “optimal cost-performance steel products,” including high-grade automotive sheets and lightweight aluminum materials. The company’s recent breakthrough in May 2025—launching non-oriented silicon steel with a core loss below 9 W/kg—exemplifies innovations that can be rapidly introduced to Central Asia’s electric vehicle supply chain.

​Localized Technical Support​

The office will deploy technical teams to offer value-added services like material testing and process training, addressing production challenges such as stamping and welding. UzAuto has emphasized the need for “technical credit support,” which Baosteel can deliver through joint labs or data-sharing platforms to reduce operational costs.

​3. Ecosystem Synergy: How Baosteel’s System Empowers Its Central Asia Strategy​

​Resource Integration via Wholly Owned Subsidiaries​

Baosteel has consolidated its automotive steel business by taking full ownership of Baosteel Nippon Automotive Plate (BNA) in late 2024. Additionally, its aluminum joint venture with Kobe Steel (February 2025) enhances capabilities to supply multi-material solutions in Uzbekistan.

​Distributor Network Collaboration​

Long-term partners (e.g., Baohui Steel) can leverage the representative office as an information hub to serve small and medium-sized customers beyond Baosteel’s direct sales network. This “mega-project direct supply + long-tail market coverage” model ensures tailored delivery of products like wear-resistant and high-strength steel.

​4. Industry Implications: The “Baosteel Model” of Steel Globalization​

Baosteel’s Uzbekistan expansion reflects a refined internationalization strategy:

• ​Anchor Key Clients: Use UzAuto as a gateway to adjacent sectors (mining, agriculture machinery).
• ​Technology Forward Deployment: Embed R&D services locally rather than merely exporting products.
• ​Policy Alignment: Integrate with host-country initiatives like industrial upgrades and privatization reforms.

​Conclusion​

The Uzbekistan office signifies Baosteel’s evolution from product exporter to a provider of technology and ecosystem solutions. For the steel industry, future competitiveness will hinge on building localized service capabilities in emerging markets, moving beyond price-based advantages.