Zhejiang Province-based Chinese steelmaker Zhejiang Kingland & Pipeline Technologies Co., Ltd (Zhejiang Kingland & Pipeline) has announced that it has inked a letter of intent for a proposed joint venture with Beijing-based Chinese company Richfit Information Technology Co., Ltd (Richfit), a wholly-owned subsidiary of BGP Inc., itself a subsidiary of state-owned China National Petroleum Corporation (CNPC).
Accordingly, the two sides will set up a joint venture company with the overall registered capital totaling RMB 600 billion ($91.46 billion). In particular, Zhejiang Kingland & Pipeline will invest RMB 510 billion ($77.74 billion) and hold a 85 percent stake in the joint venture, while Richfit will invest RMB 90 billion ($13.72 billion) and hold a 15 percent stake. In the proposed joint venture, Zhejiang Kingland & Pipeline will provide products and services regarding pipelines and related construction work, while Richfit will provide information systems and internet and secure cloud services.