Baosteel and Mitsui to form coil center in China

Baosteel and Mitsui to form coil center in China

Shanghai Baosteel Group Corporation (Baosteel) and Mitsui & Co are reported to have compromised on establishment of joint venture coil center in Fuzhou, China. This coil center will be the first joint venture that will be formed by the aforementioned companies under the scope of the agreement signed back in July 2002 to establish steel processing network covering China. The coil center which will serve automobile sector, will be established with $6 million capital, 65% of which is possessed by Baosteel, 25% by Mitsui & Co, and the rest 10% by their steel processing mill, Shanghai Bao-Mit Steel Distribution. The joint venture coil center, which is planned to commence operations by late 2004, will have annual processing capacity of 120'000-140'000 tons.