Kobe Steel Ltd Japan and China's Angang Steel Company Limited, signed a joint venture agreement today, to produce high-strength cold rolled steel sheet for automobiles.
Kobe Steel Limited and China's Angang Steel Company Limited, a leading subsidiary of Anshan Iron & Steel Group Complex signed a joint venture agreement today October 17, to establish a joint venture in China to produce and sell advanced cold-rolled high-strength steel sheet for automobiles. The two companies had been conducting a joint study to explore the possibilities of establishing a joint venture in China.
The new company will be named Kobelco Angang Auto Steel Co Ltd, is estimated to produce 600,000 metric tons per year within Angang's steelworks. Plan for production will be started in early 2016. Total investments are anticipated to reach RMB 0.75 billion (?28.9 billion).
Kobelco Angang will be headquartered at Angang's steelworks situated at China. The continuous annealing line will make cold-rolled high-strength steel with a tensile strength of 590 MPa or higher. Angang will supply the joint venture with the substrate coils. They will hire about 100 people when the operation is commenced completely.
The new company will be capitalized at RMB 700 million (11.6 billion). Angang will own 51% of the venture. Kobe Steel plans to hold around 49% share through Kobelco (China) Holding Co, Ltd.
China is the world's largest automobile market. Car production is anticipated to increase by 50% over the next 10 years. Government guidance is strengthening safety standards and environmental considerations.
Kobe Steel, Ltd
Crude steel production: 7.01 million metric tons (year ended March 2013)
Angang Steel Company Limited
Crude steel production: About 19.63 million metric tons (2012)
– sourced
Leave a Reply