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Shanghai launched a steel service association, the first of its kind at a provincial level in China, over the weekend in a bid to boost development of the city's industrial service sector.

The Shanghai Steel Service Trade Association now encompasses 160 member firms whose businesses range from trading, logistics, engineering design to research and consultancy as well as financing.

The association is based in Baoshan District in northern Shanghai, home to China's largest steel maker, Baosteel Group Corp, and near to 12 large-scale steel trading markets. It will serve as a platform to help develop and regulate the industry.

There are more than 6,000 companies in Shanghai engaged in the steel service sector in 2005, according to the newly founded association.

Shanghai is propelling its industrial service industry while developing the traditional manufacturing sectors, represented by steel, auto and petrochemical.

"We have a thriving secondary industry, boosting demand for more industrial services," said Jiang Yiren, chairman of the Shanghai Committee of the Chinese People's Political Consultative Conference, at a launch event of the association on Saturday.

Jiang said the steel service sector is not only a support and extension to the manufacturing sector, but also represents the modern service industry.