On December 29, Fujian Province-based Chinese company Xiamen ITG Holding Group Corporation Ltd inked an agreement with Tianjin-based steelmaker New Tianjin Steel Group to establish a joint venture company, according to local media sources. The new JV will ensure a strong guarantee of raw material supplies to New Tianjin Steel Group, while both companies will work together to expand the steel market in northern China.
State-owned Xiamen ITG Holding is committed to the integration and extension of the industry chain of ferrous metal, supplying iron ore, coal and coke, as well as importing and exporting finished steel. The private sector steelmaker New Tianjin Steel Group has an annual steel capacity of 19 million mt.
The establishment of the JV is expected to become a typical example of resource complementarity and strong combination between a state-owned listed company and an excellent private sector enterprise.