Beijing-based Chinese integrated steel trading and logistics services provider Minmetals Development Co. has announced that its subsidiary Minmetals Iron and Steel Co. will cooperate with Gansu Province-based Phoenix Mountain Investment Co. to invest in a new joint venture company called Minmetals Lanzhou Iron and Steel Logistics Co. for the construction of a steel logistics park in Lanzhou, Gansu.
The total investment in the project is expected to be RMB 1.2924 billion ($203.85 million), while the registered capital of Minmetals Lanzhou Iron and Steel Logistics Co. will be RMB 319.76 million ($50.435 million), with Minmetals Iron and Steel contributing 70 percent and Phoenix Mountain Investment providing the remaining 30 percent.
Minmetals Development stated that the construction period will last three-and-a-half years, while the total investment is expected to be recovered within nine years.