Nippon Steel to set up tinplate venture with Wuhan in China
23 Apr 2011
Japan's largest steelmaker Nippon Steel Corp has announced plans to locate its second tin-plate venture in China.
It already has a 25-per cent stake since 1994 in a tinplate factory in Gunagzhou, in additiont to a three-way venture with Baosteel's listed subsidiary and ArcellorMittal that makes automotive steel sheets.
To be set up in partnership with China's third-largest steelmaker Wuhan Iron & Steel Group, to whom the Japanese steel maker has in the past supplied steel-sheet manufacturing and environmental technologies.
The 50:50 venture will be located in China's Hubei Province.
The two companies will invest 24 billion yen ($293 million) to set up the tinplate factory with a 400,000 tpa annealing and processing line and 200,000 tpa electrolytic tinning line.
According to the terms of the agreement, Wuhan Iron will supply all the cold-rolled steel sheet, the raw material for making tin plate.