Nippon Steel and Baoshan sign agreement for joint venture

Nippon Steel and Baoshan sign agreement for joint venture

Japanese steel maker Nippon Steel and Chinese mill Shanghai Baoshan Iron and Steel announced that they have signed an agreement on July 22, 2003 to jointly make steel sheet for automotive industry in China. The agreement is anticipated to be completed at the end of the year and will be valid for 20 years. The investment will cost around Yuan 6.5 billion (approx. Yen 100 billion) and will be the biggest project in China. Furthermore, Japan's largest trading house Mitsubishi Corp. may invest to this joint venture. The project covers a joint venture to be established in Shanghai to build and operate a new cold rolled steel sheet plant. The plant is scheduled to initiate production in 2005 and will have an annual capacity of 1.7 million tons. This production of 900'000 tons will be cold rolled steel sheet and 800'000 tons will be galvanized steel sheet. Both Nippon and Baoshan will own 50% stake in the joint venture.