JFE Holding to establish a joint venture in China

JFE Holding to establish a joint venture in China

As previously reported by SteelOrbis, state owned Chinese steel maker Guangzhou Iron & Steel was planning to establish an integrated steel plant through a joint venture in Guangzhou, China. Accordingly, JFE Holdings Inc., the world's fourth biggest steel producer, has agreed to form a joint venture with Guangzhou Iron & Steel to produce steel sheet for automotive industry. The joint venture will be named Guangzhou JFE Steel Sheet Co. JFE and Guangzhou Iron & Steel will invest around Yen 20 billion (approx. $178.2 million) at the first phase. The production will start by April 2006. Also, JFE will hold 51% stake in the joint venture. In addition, both companies also have another joint venture plan for cold rolled steel production.