Kobe Steel Limited and China’s Angang Steel Company Limited, a leading subsidiary of Anshan Iron & Steel Group Complex, established JV called Kobelco Angang Auto Steel Company Limited in China on August 1 to produce and sell advanced cold rolled high strength steel sheet for automobiles.
The two parent companies signed an agreement on October 17th 2013 to form the JV. They subsequently undertook the necessary incorporation procedures to set up the new company. After receiving approval from the Chinese government, Kobe Steel and Angang were able to establish Kobelco Angang Auto Steel.
Kobelco Angang Auto Steel will construct a continuous annealing line with a production capacity of 600,000 tonnes per year to make cold rolled high strength steel with a tensile strength of 590 MPa or higher. Angang will supply the joint venture with the substrate coils. Plans call for production to begin in early 2016. Total investments are anticipated to reach CNY 1.75 billion.
Kobelco Angang is headquartered at Angang’s steelworks, Anshan Base, in Anshan, Liaoning Province. The new company is capitalized at CNY 700 million. Angang owns 51% of the venture. Kobe Steel holds a 49% share through Kobelco (China) Holding Company Limited. The joint venture will employ about 100 people when it reaches full operation. The chairman of the joint venture is Wang Yidong from Angang.
In China, the world’s largest automobile market, the new company will combine Kobe Steel’s world class automotive cold rolled high strength steel technology with Angang’s solid business base to meet growing demand for high strength steel in China.
Source – Strategic Research Institute