China's Baosteel, Baowu Aluminum, Japan's Kobe Steel to form JV (updated)

Kobe Steel

08/08/2024 12:57

(Updates with details from statement)
       BEIJING, Aug 8 (Reuters) - China's Baoshan Iron and
Steel  600019.SS  (Baosteel), Baowu Aluminum and Japan's Kobe
Steel  5406.T  will form a joint venture to produce automotive
aluminium sheets, Kobe Steel said on Thursday.
    Kobe will have a 50% stake in the venture and Baosteel and
Baowu the remaining 50%, the statement on Kobe's website said,
without specifying the breakdown.
    The deal will be contingent on obtaining the necessary
regulatory approvals.
    The new company will produce aluminium sheets for China's
domestic automobile manufacturers at two plants in Tianjin and
central Henan province.
    The provisional name of the venture, to be established in
Shanghai with registered capital of 900 million yuan ($125.5
million), is Kobelco Baosteel Automotive Aluminum Rolled
Products.
    Baosteel is a subsidiary of the world's largest steelmaker,
China Baowu Steel Group. Kobe is Japan's third-largest
steelmaker.
    The companies had announced on Feb. 26 that they would carry
out a feasibility study on the potential joint venture.

 (Reporting by Colleen Howe and Amy Lv; editing by Jason Neely
and Jan Harvey)
 ((colleen.howe@thomsonreuters.com;))