Itochu sets up JV with Chinese trading company for iron ore sales

Tokyo-based Itochu Corporation has announced that, together with Chinese state-owned trading company Tewoo Group Co., Ltd, it has established TEWOO-ITC Global Trading Co. Ltd, a joint venture to handle imports, processing and sales of iron ore and other iron raw materials in the Chinese city of Tianjin.
 
Itochu will have a 49 percent interest in the new company, and Tewoo Group a 51 percent interest, with investments totaling $14.7 million and $15.3 million respectively.
 
Itochu said that this joint venture is the first time a Japanese trading company has tried to sell iron ore in partnership with a Chinese state-owned trading company. It will be able to reliably procure iron ore and other materials through Itochu's overseas network, and establish a value chain based on Tewoo Group's domestic mineral processing facilities and sales network in China. Access to such a wide range of quality raw materials will enable the joint venture company to make the most of its resources and cater to demand for iron ore in China as it continues to grow in the future.