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).

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Kobe Steel, Ltd. and China’s Angang Steel Company Limited, a leading subsidiary of Anshan Iron & Steel Group Complex, established a joint venture called Kobelco Angang Auto Steel Co., Ltd. in China on August 1 to produce and sell advanced cold-rolled high-strength steel sheet for automobiles.

The two parent companies signed an agreement on October 17, 2013 to form the joint venture. They subsequently undertook the necessary incorporation procedures to set up the new company. After receiving approval from the Chinese government, Kobe Steel and Angang were able to establish Kobelco Angang Auto Steel.

Kobelco Angang Auto Steel will construct a continuous annealing line with a production capacity of 600,000 tons 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. Plans call for production to begin in early 2016. Total investments are anticipated to reach 1.75 billion yuan (about 28.9 billion yen).

Kobelco Angang is headquartered at Angang’s steelworks, Anshan Base, in Anshan, Liaoning Province. The new company is capitalized at 700 million yuan (11.6 billion yen). Angang owns 51 percent of the venture. Kobe Steel holds a 49 percent share through Kobelco (China) Holding Co., Ltd. The joint venture will employ about 100 people when it reaches full operation. The chairman of the joint venture is Wang Yidong from Angang.

In China, the world’s largest automobile market, the new company will combine Kobe Steel’s world-class automotive cold-rolled high-strength steel technology with Angang’s solid business base to meet growing demand for high-strength steel in China.

Original source: http://www.kobelco.co.jp/english/releases/2014/1189994_13891.html