China, Japan to form joint venture for automotive aluminum sheets
China's Baoshan Iron and Steel (Baosteel), Baowu Aluminum, and Japan's Kobe Steel have agreed to form a joint venture to produce automotive aluminum sheets. The announcement was made by Kobe Steel on Thursday.
Kobe Steel will hold a 50% stake in the venture, while Baosteel and Baowu will collectively hold the remaining 50%. The exact breakdown of ownership within the Baosteel-Baowu group was not specified in the statement released on Kobe's website.
The joint venture is contingent upon obtaining the necessary regulatory approvals. Once approved, the new company will produce aluminum sheets for China's domestic automobile manufacturers at two plants located in Tianjin and central Henan province.
The venture, which will be established in Shanghai with a registered capital of 900 million yuan ($125 million), will operate under the provisional name Kobelco Baosteel Automotive Aluminum Rolled Products.
Baosteel is a subsidiary of China Baowu Steel Group, the world's largest steelmaker. Kobe Steel is Japan's third-largest steelmaker. The companies had previously announced on February 26 that they would conduct a feasibility study on the potential joint venture.