Japanese steelmaker JFE Steel Corporation has announced that it has signed an agreement with Chinese steel producer Guangdong Shaoguan Iron and Steel Songshan Co. Ltd. (SGIS), a subsidiary of Chinese Baowu Steel Group Corporation Limited, to form a joint venture (JV) company for the production and sale of specialty steel bars. Under the agreement, JFE Steel will obtain a 50 percent share in Baosteel Special Steel Shaogan Co. Ltd. (BSSS), a subsidiary of SGIS.
JFE Steel also said that the joint venture will have a capacity of approximately 1.1 million mt per year and that it will create about 500 jobs in Shaoguan, Guangdong Province.
JFE Steel has stated that it will enter into a formal equity transfer and joint venture contract with SGIS in the near future and acquire equity in BSSS after receiving the required approvals.
The new joint venture the two companies will launch is expected to meet local needs for high-grade specialty steel bar, with a primary focus on Japanese customers.