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JFE Steel Corporation (President:Fumio
Sudo) and Guangzhou Iron & Steel Enterprises
Holdings Ltd. (Chairman: Yuan Jinxi) have
reached a basic agreement to establish a joint
venture to produce and market hot-dip galvanized
steel sheets primarily for the automobile
industry in Nansha Development Zone, Guangzhou,
Guangdong Province, China. The joint venture
is targeted to meet the increasing demand
forecast for high-quality steel sheets for
the automobile industry in the country. The
agreement was executed by Mr. Sudo and Mr.
Jinxi in Guangzhou today.
Following the agreement, the
two companies will continue to work out the
details and expect to conclude a joint
venture agreement by the end of October,
2003. The companies plan to commence commercial
operation by April, 2006.
The joint venture announced
today is the first step of collaboration.
The two companies also have agreed to conduct
a study on cold rolled steel sheets, taking
various elements into consideration at a future
stage.
<Outline of the Joint
Venture>
| (1) Name |
: |
GUANGZHOU JFE
STEEL SHEET COMPANY LTD. |
| (2) Objective |
: |
Primarily to meet
the growing requirements for hot-dip galvanized
steel sheets for the automobile industry in
China |
| (3) Products |
: |
Hot-dip galvanized
steel sheets (mainly for the automobile industry,
some for electric appliance and construction
applications) |
| (4) Facility
|
: |
Hot-dip galvanizing
line with an annual capacity of 400,000 tons/year |
| (5) Employees |
: |
Approximately
200 |
| (6) Location |
: |
Nansha Development
Zone, Guangzhou, Guangdong Province |
| (7) Total
Investment |
: |
Approximately
170 million US dollars (approximately 20 billion
yen) |
| (8) Registered
capital |
: |
Approximately
76 million US dollars (approximately 9 billion
yen) |
| (9) Ownership |
: |
| JFE Steel Corporation |
51% |
| Guangzhou Iron & Steel
Enterprises Holdings Ltd. |
49% |
|
| (10) Schedule |
: |
Reaching a
joint venture agreement by the end of
October, 2003
Commencing commercial operation by April,
2006 |
(Reference)
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