On September 28, Henan Province-based Chinese steelmaker Anyang Iron and Steel inked an investment cooperation agreement with Inner Mongolia-based Baotou Weifeng New Material Co., Ltd., planning to build a grain-oriented silicon steel production line with an annual capacity of 160,000 mt at Anyang Steel’s Zhoukou production base.
In order to promote the transformation of the company’s special steel business, optimize its product structure, and enhance its competitiveness in the market, Anyang Steel plans to set up a joint venture with Baotou Weifeng New Material, with a provisional company name of Longdu Electromagnetic New Material Technology Co., Ltd.
Anyang Steel will invest RMB 102 million ($14.3 million) in cash, holding 51 percent of equity in the new company, while Baotou Weifeng New Material will invest RMB 98 million ($13.8 million), holding the remaining 49 percent.
The business scope of the new JV includes the production and sales of high magnetic orientation silicon steel and non-oriented silicon steel, research and development, and technical services.