On September 15, Chinese steel producer Anshan Steel Group inked an agreement on its joint venture with US-based Steel Development Company which includes companies from other countries such as Italy, Japan, Germany, Canada and the US. According to the agreement, the companies will establish a high-tech and environment-friendly rebar mill in Amory, Mississippi, US, which is expected to come on stream in the third quarter of 2012. The total investment of the project is expected to amount to $168 million, while Anshan Steel Group will hold a 14 percent share in the joint venture.
President and CEO of Steel Development Co., John Correnti, said, "The 52 of the total 465 members of the US House of Representatives who opposed Anshan Steel's participation in the project are all from the core steelmaking regions of America. They were worried about the possible threat to employment rates brought by the company. However, Anshan Steel will only own 330,000 mt of steelmaking capacity, compared with the total steel production capacity of 7 million mt throughout the country. Besides, with the construction of the new mill, there will be an additional 1,000 jobs in the country.
Zhang Xiaogang, chairman of Anshan Steel Group, commented that the Chinese company's investment in this project is normal, and thus all resistance will disappear after the project officially commences.