(Yicai Global) March 13 -- State-owned steel giant China Baowu Steel Group Corp., also known as Baosteel, recently established a joint laboratory with China's central Henan province-based bus manufacturer Zhengzhou Yutong Bus Co. to make research on materials, applications and manufacturing technology.

The initial cooperation projects between the two parties will focus on the design, process and material optimization of new energy vehicles (NEV) to provide lightweight solutions for all-electric buses, the Shanghai-based steel giant said on its website yesterday. The laboratory will also become a link between the two companies to strengthen communication and exchange of technical personnel, it added.

The two companies also hope to cultivate multidisciplinary talents through the laboratory and provide information and technical support for the long-term development of joint projects.

Baosteel was established in 2000. Its listed arm Baoshan Iron and Steel Co. merged with another state-owned steel company, Wuhan Iron and Steel Co. in late 2016. After the merger was completed, Baosteel's crude steel and automotive steel plate production ranked third in the world, making the company one of global steelmakers with most complete product varieties.

Yutong Bus was the first listed bus manufacturer in the Chinese mainland with bus sales of 70,988 units, including 26,856 new energy buses, in 2016. Its products have been sold in more than 30 countries including Russia, Israel, Cuba, and Venezuela.