Nippon Steel Corp. has entered into tie-up talks with Baoshan Iron and Steel Co. of China on a joint venture to make automobile steel sheets, a report said Wednesday.
The Japanese firm's president Akira Chihaya and Baoshan Chairwoman Xie Qihua reached an agreement in June to deepen cooperation in production and development, the Nihon Keizai Shimbun said.
The partners hoped to sign a formal agreement by the end of 2001, the business daily said.
The pair planned to start constructing the plant in Shanghai as early as in 2002 and kick off the production in 2004, with a capital estimated at 20 billion yen to 30 billion yen (US$160 million to US$240 million), it said.
The deal would enable Japan's biggest steelmaker to gain a foothold in China, where demand for steel products is expected to grow.
It would mark the latest international partnership for Nippon Steel, which has forged ties with South Korea's Pohang Iron and Steel Co. and Usinor SA of France.
(China Daily 07/12/2001)
