China’s largest steel maker Hebei Iron & Steel Group is planning to set up a high volume JV in South Africa.
The Phase I of the project with 3 million tonne capacity will start construction in 2015 and be put into use in 2017. The Phase II with 2 million tonnes of capacity will start production in 2019. The project is expecting a total annual capacity of 5 million tonnes upon completion.
Hebei Iron & Steel Group, the Industrial Development Corporation of South Africa and the China and Africa Development Fund, signed the cooperation memorandum for the project on Wednesday in Beijing.
Hebei Iron & Steel Group will have a 51% stake in the JV, a manager of the company told Xinhua, who declined to reveal the total investment for the project.
Mr Yu Yong, president of Hebei Iron & Steel Group said that “It is an important move for the group to implement the country’s industrial restructuring and the go abroad strategy of the iron and steel sector.”
Mr Geoffrey Qhena CEO of IDC said that “The project will help lower the high prices of steel products, boost downstream industries of the steel sector in South Africa and bring more jobs.”
Source – Xinhua
Zhejiang Yaang Pipe Industry Co., Limited