JFE Steel to Form JV With Baowu Steel Group in China

JFE Steel Corporation, Japans one of the largest steel manufacturing company announced to start a joint venture with Chinas Baosteel Special steel Shaoguan Co, Ltd (an affiliate of Baowu Steel Group Corporation Ltd) for the manufacture and sale of special steel bars, taking over 50% stake in BSSS. This is the first time when a foreign capital has entered special steel bar production in China. The investment is planned to be RMB 690 million.

JFE Steel has been searching for local production and sales of high-quality special steel bars in order to further develop the Chinese market and penetrate the JFE brand due to the local procurement needs of Japanese users.

The planned joint venture aims to produce an annual production capacity of about 1.1 MnT pa of special bar steel.

~Inputs from Japan Metal Daily