Tokyo-based Itochu Corporation has announced that, together with Chinese state-owned
trading company Tewoo Group Co., Ltd, it has established TEWOO-ITC Global
Trading Co. Ltd, a joint venture to handle imports, processing and sales of
iron ore and other iron raw materials in the Chinese city of Tianjin.
Itochu will have a 49 percent interest in the new company, and Tewoo Group a 51 percent interest, with investments totaling $14.7 million and $15.3 million respectively.
Itochu said that this joint venture is the first time a Japanese
trading company has tried to sell
iron ore in partnership with a Chinese state-owned
trading company. It will be able to reliably procure
iron ore and other materials through Itochu's overseas network, and establish a value chain based on Tewoo Group's domestic mineral processing facilities and sales network in
China. Access to such a wide range of quality raw materials will enable the joint venture company to make the most of its resources and cater to demand for
iron ore in
China as it continues to grow in the future.