Business Services Industry

CHINA: Joint venture construction plans for proposed $426,000,000 steel sheet plant, JFE HOLDINGS INC. [Japan], GUANGZHOU IRON & STEEL ENTERPRISES GROUP (GISEG) [China] Order #: 108606.

WWP-Business Opportunities in Asia & the Pacific, October, 2006

PROJECT OVERVIEW:

The Chinese government in July 2005 announced regulations on foreign investment in the steel industry and restrictions on construction of new facilities. As a result, a Sino/Japanese joint venture that teams-up Japan-based JFE HOLDINGS INC and the local GUANGZHOU IRON & STEEL ENTERPRISES GROUP (GISEG) subsequently decided to postpone making a final decision on a blast furnace construction project for about a year

Nevertheless, the partnership is now considering the construction of a mill to produce steel sheets for use in automobiles to keep pace with growing demand in the region. Construction plans under consideration would call for building a plant with an installed production capacity of 1 million tons per year (t/y). This new...

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