Application service provider (ASP) based dynamic alliance has great advantages in die industry. This paper presents a complete scheme for establishing an ASP-based dynamic alliance for automobile panel die industry. The proposed scheme divides the job of partner selection into three phases, i.e., discovery of potential partners, junior evaluation and selection of potential partners and combination optimization of dynamic alliance. Methods for the three phases of partner selection are proposed and discussed. A prototype system has been developed to confirm the proposed scheme’s feasibility and efficiency.