On January 14, Chinese steel giant Baowu and Japanese steelmaker JFE inked a cooperation agreement.
Accordingly, in order to further seize development opportunities in the special steel bar market, Japanese steelmaker JFE and Guangdong Province-based Shaoguan Iron and Steel Co., Ltd, which is owned by Baowu Group, will set up a joint venture called Baowu Jiefuyi Special Steel Co., Ltd to produce and sell high-quality special steel bar.
Baowu Jiefuyi Special Steel will be set up by the end of March this year, and will receive technical support in production and quality control from JFE to meet the demand of Japanese automobile enterprises for high-quality special steel bar, especially in Guangdong.
JFE will invest RMB 690 million ($100.0 million) in the joint venture in question and will hold 50 percent of equity in the JV.