Kobe Steel and China’s Angang Steel Company, a subsidiary of Anshan Iron & Steel Group Complex, have established a joint venture known as Kobelco Angang Auto Steel Co in China to produce and sell cold-rolled high-strength steel sheet for automobiles.
The two parent companies signed an agreement on 17 October, 2013, to form the joint venture and then undertook the necessary incorporation procedures to set up the new company.
After receiving approval from the Chinese government, Kobe Steel and Angang established Kobelco Angang Auto Steel.
Kobelco Angang Auto Steel will construct a continuous annealing line with a production capacity of 600,000t 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, with production slated to start in early 2016.
Total investments are anticipated to reach CNY1.75bn (US$291m).