Liaoning province-based Chinese major steelmaker Bengang Steel Plates Co., Ltd. has announced that it plans to set up a joint venture with Liaoning province-based Ansteel Green Gold Industry Development Co., Ltd., with a temporary company name of Green Gold (Benxi) Recycling Resources Co., Ltd. Bengang Steel Plates will invest RMB 30.6 million ($4.3 million) and hold 51 percent equity of the new JV, while the overall investment by two parties will amount to RMB 60 million ($8.4 million).
According to the announcement, the establishment of this JV will accelerate the company's layout in northeastern China, aiming to control the source resources. The new JV could utilize Ansteel Green Gold Industry Development’s existing scrap base, while reconstructing the resource network based on the demanding material type, which will increase the company’s supply channels of scrap, to ensure the continuous and stable supply of scrap resources.