On November 20, 2019, JFE steel, a Japanese steel producer, said it would invest in a subsidiary of China's largest steel producer to start producing special bars in China.
The Japanese steelmaker will pay 690 million yuan ($100 million) for a 50% stake in Shaoguan, Baosteel Special Steel, a subsidiary of China Baowu iron and Steel Group, China's largest steelmaker.
JFE's goal is to obtain regulatory approval and complete the equity purchase by the end of the financial year (March 2020).
Shaoguan company of Baosteel Special Steel Co., Ltd. can produce 1.1 million tons of special bars every year, which are used in the production of auto parts. JFE will become the first Japanese steelmaker to produce the product in China, a company spokesman said.
China's auto sales have recently declined, while JFE's premium specialty bars are mainly shipped to Japanese automakers, whose sales in China have been growing. (From LGMI)