Based in the Inner
Mongolia province of
China, Baogang Steel Union (Baotousteel) agreed to invest 69 million RMB ($8.34 million) to participate in the
construction of a 729 km's railroad project.
The
construction is scheduled to start in September 2005.
The project aims at improving the transportation structure of Inner
Mongolia.
Baotou Steel had recently announced an initial stage joint venture agreement General Steel Holdings Chinese subsidiary Tianjin based Da Qiu Zhuang Sheet Metal Co. Da Quiu Zhuang is a manufacturer of high quality hot-rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles.
Baotou Steel is expected to increase the annual steel sheet
production from the current 250'000 tons to over 1 million tons when the joint venture transaction is completed.