HONG KONG (Yonhap News) -- Ningbo Baoxin Stainless Steel Co., a Chinese steelmaker, said Friday that it has signed a business cooperation agreement with South Korea’s LG Electronics Co., in a bid to boost their competitiveness in the global market.

Under the deal, Ningbo Baoxin Stainless Steel and LG Electronics will strategically cooperate in developing new products and enhance their common vision and interests, the Chinese stainless steelmaker said.

Also, the deal calls for Ningbo Baoxin to supply stainless steel sheets to LG Electronics’ factories in China, America, Asia and Europe.

Currently, 70 percent of the stainless steel used by LG Electronics in China comes from Ningbo Baoxin, according to the Chinese firm.

Ningbo Baoxin, an affiliate of China’s largest steel manufacturer Baoshan Iron & Steel Co., has an annual capacity of 600,000 tons of stainless steel.

LG Electronics is estimated to use over 150,000 tons of stainless steel for production of home appliance products, such as washing machines, refrigerators and microwave ovens.

“A steady long-term cooperative relationship with LG Electronics will help overcome challenges faced by both sides at a time when both stainless steel and home appliance industries witness growing competition,” Ningbo Baoxin said in a statement.

Stainless steel products are growing more popular in the home appliances market for having longer life spans and being easy to clean.