News Release > 2007 > A Joint Venture Agreement on the Cold Rolling Mill Project in Guangzhou Nansha Development Zone in the city of Guangzhou, China has been executed.- JFE Steel Corporation
A Joint Venture Agreement on the Cold Rolling Mill Project in Guangzhou Nansha Development Zone in the city of Guangzhou, China has been executed.
JFE Steel Corporation and Guangzhou Iron and Steel Enterprises Holdings Ltd. established Guangzhou JFE Steel Sheet Company Ltd. (GJSS), a joint venture to produce and market hot-dip galvanized steel sheets primarily for the automobile and electric appliance industries in China in December 2003, and completed the construction of the No.1 Continuous Galvanizing Line (CGL) with a capacity of 400,000 tons per year in March 2006. Since then, GJSS has steadily ramped up the operation of CGL.
As we announced in an earlier press release on March 6, 2007, in order to meet the demand for high quality automotive and electric appliance steel sheets, which is expected to continue to rise, JFE Steel and Guangzhou Iron and Steel reached an agreement to expand the business of GJSS and build additional production facilities including: (1) Cold Rolling Mill, (2) Continuous Annealing Line, and (3) No.2 CGL. As GJSS obtained approval for the expansion from the National Development and Reform Commission on June 22, the two companies today executed a Joint Venture Agreement and conducted a signing ceremony in Guangzhou. GJSS plans to commence production in 2010.
<Outline of the New Production Facilities>
| (1) Cold Rolling Mill (PL - TCM) | 1.8 million tons / year |
| (2) Continuous Annealing Line (CAL) | 1.0 million tons / year |
| (3) No. 2 Continuous Galvanizing Line (CGL) | 0.4 million tons / year |
<Outline of Guangzhou JFE Steel Sheet Company Ltd.>(As of July, 2007)
| (1) Head office | :Wanqingsha, Nansha District, Guangzhou City, Guangdong Province | |
| (2) Chairman | :Huang Zhi Yong | |
| (3) President | :Satoshi Kasai (dispatched from JFE Steel) | |
| (4) Production facilities | :Hot-dip Galvanizing Line (400,000 tons / year) | |
| (5) Products | :Hot-dip galvanized steel sheets (mainly for the automotive industry, some for electric appliance and construction applications) | |
| (6) Employees | :Approximately 200 | |
| (7) Plant location | :Nansha Development Zone, Guangzhou City, Guangdong Province | |
| (8) Total investment | :Approximately 170 million US dollars (Additional capital investment for the Cold Rolling Mill Project:Approximately 820 million US dollars) |
|
| (9) Registered capital | :Approximately 76 million US dollars (After capital increase: 443 million US dollars) |
|
| (10) Current ownership | :JFE Steel Corporation | 51% |
| Guangzhou Iron and Steel Enterprises Holdings Ltd. | 49% | |
| (After capital increase: 50% each) | ||
<Outline of Guangzhou Iron and Steel Enterprises Holdings Ltd.>
- A group of state enterprises founded in 1958
- (1) Head office: Liwan District, Guangzhou City, Guangdong Province
- (2) Chairman: Chen Jia Ling
- (3) President: Zhang Ruo Sheng
- (4) Capital: 2.2 billion yuan (capitalized entirely by the city of Guangzhou)
- (5) Turnover: 20.9 billion yuan (2006)
- The group is centered on three core steel companies, Guangzhou Iron and Steel Co. Ltd., Guangzhou Zhujiang Steel Co. Ltd., and Guangzhou Non-ferrous Metals Group.
- The group produced 3.31 million tons of crude steel in 2006. Its main products are deformed bars, bars, and hot rolled coils, and non-ferrous metals (copper, aluminum, zinc, etc.).
For further information, please contact:
Public Relations Section, General Administration Dept.
JFE Steel Corporation
Tel: +81-3-3597-3166
