INDIA BUSINESS WORLD - August 1st - August 31st - 2008
ARCELORMITTAL SIGNS JV WITH CHINESE STEEL CO
WORLD'S largest steel maker ArcelorMittal today said it has signed a joint venture agreement with China's Hunan Valin Steel Group for the production and sale of electrical steel.
In a statement, ArcelorMittal said the JV would build cold rolling and processing facilities for the production of non-grain oriented (NGO) and grain oriented (GO) electrical steels.
"The total investment is estimated at RMB 6.5 billion (about 947 million dollars), aiming for an annual production of 400,000 tonnes non-grain oriented and 200,000 tonnes grain oriented steel," the statement said.
The new joint venture 'Valin ArcelorMittal Electrical Steel' has a registered capital of RMB 2.6 billion (about 378 million dollars) and both parties would have 50% stake.
Further, Valin Liangang, a subsidiary of Valin Steel Tube & Wire, has signed a supply agreement with the JV.
"Valin continues to target high-end flat rolled demand, supported by the technical platform set up with ArcelorMittal and adjusting its product mix, developing its own core technical and innovative capabilities.
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