The Chairman of China metallurgical group Baowu Chen Dejun and President of the Japanese Corporation JFE Iron and Steel Yoshihisa I signed an agreement to establish a joint venture Baowu Fuyi Special Steel for the manufacture of products from special steels.
Group Baowu in this venture will represent the manufacturer of stainless steel long products of Shaoguan Iron and Steel. The new plant with the participation of Japanese capital will be built at its main site in Guangdong province.
It is assumed that it will produce high-quality long products from stainless and special steels for automotive and engineering industry. At the same time around the plant Shaogang already created a cluster of manufacturers of components for cars and industrial equipment.
For the last three months it already the second joint project Baowu and JFE Iron and Steel in production of rolled special steels. In November last year, the Japanese Corporation made a deal to buy 50% stake of the respective unit of the Chinese company SGIS Songshan, which, in turn, is part of Baowu Steel Group.