Chinese steelmaker Baosteel Group has revealed its plans together with its affiliate Bsteel Online to establish a joint venture e-commerce company which is expected to boost transaction activity between steel producers and steel users. The new company is expected to expand the market for Baosteel's high value-added products.
The total registered investment in the new joint venture will amount to RMB 2.0 billion ($0.326 billion), with Bsteel Online contributing RMB 1.02 billion ($0.166 billion) or a 51 percent share of the overall figure, while Baosteel Group will contribute RMB 980 million ($160 million), equivalent to 49 percent. The e-commerce company will avail of Bsteel Online's information technology expertise to boost infrastructure for online steel trading.