Siemens and Baoshan Iron & Steel Co., Ltd. (Baosteel Co., Ltd.) recently signed the Integrated Spare Parts & Service Strategic Framework Agreement to establish a sustainable strategic partnership for comprehensive services, expanding the scope of cooperation from products and solutions to a wider range of areas such as digital consulting, big data analysis, intelligent maintenance and personnel training. Siemens will provide Baosteel Co., Ltd. with all-round support from spare parts supply to digital services, so as to ensure the business continuity of Baosteel with a brand-new service model and enhance its “smart manufacturing” capability. As a further deepening of the Spare Parts Framework Agreement signed by both parties in 2015, this cooperation will serve as another cooperation model in exploring the path and methods regarding digital transformation of Chinese steel companies.

"Since China’s reform and opening-up, Siemens and Baosteel have formed a deep friendship by walking hand in hand and sharing weal and woe. With the arrival of the fourth industrial revolution, the steel industry is facing various challenges in transforming to intelligent manufacturing. With advanced technologies and expertise in industrial automation and digitalization worldwide, Siemens will be a reliable partner with Baosteel Co., Ltd. for its digital transformation,” said Wang Haibin, Executive Vice President of Siemens Ltd., China, and General Manager of Digital Industries, Siemens Greater China. “The agreement signing will bring broader space and prospects for our cooperation. We hope to take this opportunity to explore the new path to ‘smart manufacturing’ in China’s steel industry with Baosteel Co., Ltd.

“As a key fundamental industry of the national economy, the steel industry is facing challenges such as overcapacity, cost reduction, efficiency increase, energy saving and emission reduction. Digitalization is the only way for the transformation and upgrade of the steel industry. This strategic cooperation with Siemens will greatly drive the digital construction of Baosteel Co., Ltd. We look forward to working with Siemens to explore the value of data and innovative business models to inject vitality into our digital transformation and upgrade,” said Wei Chengwen, Deputy General Manager of Baoshan Iron & Steel Co., Ltd.

According to the agreement, Siemens will provide all-round technical support for Baosteel in various areas such as spare parts supply, repair and renovation, service, training and industrial intelligent manufacturing. For specific equipment and systems, Siemens will provide trade-in services, transparent equipment operation management and intelligent analysis of production lines. In terms of big data analysis, the two parties will also cooperate further. Through its product lifecycle management (PLM), asset optimization analysis (AOS) and other technologies, Siemens will provide guidance and advice on the operation of Baosteel’s production line equipment, so as to realize downtime warning, product upgrading and inventory optimization, effectively reducing operation and maintenance costs and improving overall equipment efficiency and output. In addition, Siemens also plans to build tailor-made intelligent manufacturing solutions for Baosteel Co., Ltd. in various aspects, including project planning, technical consulting, on-site implementation, product procurement and personnel training.

As early as in August 2015, Siemens and Baosteel worked together in a joint project team to explore the practice of Industrie 4.0 in the steel industry. The Strategic Agreement for Intelligent Manufacturing (Industry 4.0) signed by both parties in 2016 has become an excellent example of collaboration between Germany’s Industrie 4.0 program and China’s intelligent manufacturing, as well as the benchmark for intelligent manufacturing in China’s steel industry. In August 2017, Siemens signed a cooperation agreement with Baosteel Industry Technological Service Co., Ltd. under Baosteel Engineering & Technology Group Co., Ltd. on virtual remote maintenance, diagnostic technology and standard platform project, which aimed to help build an efficient digital and visualized operation and maintenance system, enable lifecycle management of equipment operation and maintenance, and make joint efforts to provide virtual remote maintenance and diagnostic technology for the process industry.