Kobe Steel to form joint venture in China
Japanese steel producer Kobe Steel is planning to establish a joint venture company in Guangdong province of
China to process special steel
wire rods for the
automotive industry.
It is reported that steel trader Metal One Corporation and
wire rod processors Kyodo Shaft Co and Sugita
Wire Ltd will hold equities in the joint venture company, which will temporarily be called Kobe
Wire Products Co Ltd. Kobe Steel, Metal One, Kyodo Shaft Co and Sugita
Wire Ltd will hold 60%, 25%, 7.5% and 7.5% equity in the new company, respectively.
The joint venture company will produce cold drawn steel bar and cold heading quality steel
wire. The processed bar and
wire will be supplied to Japanese auto parts producers in
China.
The new company, which is planned to be established in November with an investment of Yen 1.8 billion ($17 million), will have a registered capital of Yen 725 million ($6.8 million).
Production at the company is expected to begin in April 2006.