Anshan Iron & Steel Group Corporation (Ansteel), a leader in the Chinese steel industry and one of the top steel producers in the world, and Bekaert, Belgium-based technological leader in advanced metal transformation, advanced materials and coatings, have announced their decision to form a 50:50 joint venture for the manufacture of steel cord.
Following the announcement of the MoU, outlining the terms for a strong cooperation between Ansteel and Bekaert, the joint venture is a first step in the realization of the strategic partnership.
Ansteel and Bekaert will invest a total of €150 million in the construction of a new steel cord plant to be built in the Shuangqiao District within the Chongqing Municipality of Western China.
This investment, in line with market development, will take place in phases. The first phase is scheduled to commence production in 2009 and involves a capital investment of €40 million. Both companies will sign the investment agreement with the Shuangqiao District Government in Chongqing on June 8, 2008.
According to Chen Ming, Director of the Strategic Development Department of Anshan Iron & Steel Group Corporation, this joint venture is an important step in Ansteel's strategic downstream integration plans since it will open up new markets for Ansteel in partnership with Bekaert, a world leader in advanced wire products. Meanwhile, Geert Roelens, Group Executive Vice President of Bekaert, said that with Ansteel being their partner in wire rod development and supply, Bekaert is confident that this first tangible realization of their partnership agreement will be the start of an extensive and fruitful cooperation.