ORIX Corporation has entered a strategic alliance with Shougang Group, focusing on investment in car parking management as part of a broader collaboration across multiple sectors in China.

Target Information

ORIX Corporation has recently signed a strategic alliance agreement with Shougang Group, a distinguished enterprise based in Beijing, and established in 1919. Shougang Group has nearly a century-long history, evolving into a substantial conglomerate primarily focused on iron and steel production, as well as contributing to various sectors including finance, infrastructure management, and environmental sustainability. Currently, the group oversees 544 subsidiaries and employs approximately 88,000 individuals.

The first initiative of this partnership is an investment by ORIX in Shougang Concord International ("Shougang Concord"), a subsidiary responsible for car parking operations and management. Through this investment made via ORIX Asia Capital Limited, ORIX will acquire a 6.3% stake in Shougang Concord, aiming to enhance its presence in China's evolving infrastructure landscape.

Industry Overview in China

China's automobile market has witnessed remarkable growth over the past decade, with the number of retained vehicles increasing by over 10% annually, culminating in approximately 217 million cars by the end of 2017. This upward trajectory is