ThyssenKrupp and Arcelor to invest in China

ThyssenKrupp and Arcelor to invest in China

According to recent market news, European steel giants German ThyssenKrupp and Luxembourg based Arcelor plan to invest in China. ThyssenKrupp invested €120 million ($141 million) to supply steel for developing automotive industry in China. The company estimates its sales into China to increase tenfold and amount to €800 million ($940 million) in coming years. Meanwhile, officials of Arcelor expressed that the company is in preparation to sign an agreement to acquire shares of the new steel plant located in Shangai. This will be the first enterprise of Arcelor in China. The company aims to acquire shares of 12% of the plant. Arcelor will spend 100 million€ for the shares. The 50% of the shares of the new plant will belong to Baosteel and Nippon Steel will possess 38%. The plant is scheduled to commence operation in 2005 and produce 1.7 million tons of flat products per annum for automotive industry.