Chinese steelmaker General Steel Holdings, Inc. has announced that it has entered into a joint venture framework agreement with Chinese company Shanxi Meijin Energy Group Co., Ltd. (Meijin Energy).
According to the framework agreement, General Steel will contribute approximately $64.7 million in cash or stock and shall thereafter hold a 55 percent interest in Shanxi Meijin Iron and Steel Co. Ltd. (Meijin Steel), which is currently 100 percent owned by Meijin Energy.
Meijin Steel was founded in 2003 near the city of Taiyuan in the province of Shanxi, and has approximately 1.2 million metric tons of annual crude steel production capacity and about 1 million metric tons of annual pig iron production capacity. On an annual basis, Meijin Steel has a processing capacity of 600,000 metric tons of high speed wire and 900,000 metric tons of rebar and round steel.