Sumitomo Metal Industries to form jv in China
Recent market news reports that Japanese Sumitomo Metal Industries' wholly owned subsidiary Sumitomo Metals is planning to form a joint venture in
China, which will produce specialty steel bar to be used for automobile parts.
The joint venture company will be established in Jingyin, Jiangsu province, with an investment of Yen 17.2 billion ($161 million). Moreover, the company, which will be capitalized at Yen 5.7 billion ($53 million) is scheduled to start operation by the end of 2005.
Sumitomo Metal Industries and Hong-Kong based investment company CITIC Pacific Ltd will hold 49% and 51% shares in the company, respectively. Annual capacity of the company will be 1 million tons and the company will supply steel bars to Japanese auto makers in
China.