Japan's Aichi Steel Corp Plans to Set Up Auto Parts JV in China

Emerging Markets Economy, Apr 8, 2003

Aichi Steel Corporation, the Japanese company, has announced that it plans to set up an auto parts joint venture in Shanghai in May with three other companies.

Aichi Steel stated that Shanghai Aichi Forging Company, the new joint venture, will produce automobile parts for China and Southeast Asian countries by taking over Shanghai Automotive's existing factory there. The new company plans to start operations in June 2002.

Aichi Steel will hold a 42% stake in the joint venture, China's Shanghai Automotive Forging Works will hold a 40% stake, and Sumitomo Corp. and Toyota Tsusho Corp., the Japanese trading companies, will each own a 9% stake, according to the People's Daily.

Aicha Steel stated that the new joint venture is expected to sell 10,000 tonnes of products in its first year of production, and is expected to raise its production to 27,000 tonnes by 2006.

Aichi Steel Corporation makes steel and steel products. The company has the following divisions: Steel products (material, machinery); forged products (automobile parts); and electronic & magnet parts (electronic materials, medical equipment). - (EMEconomy.com)