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Baosteel cooperates with Japanese Nippon
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China's Baosteel Group Co. Ltd. and Japanese Nippon Steel Co. co-invested in a manufacturing line capable of annually producing 450,000 tons of zinc plates, China Business News reported on November 6.

The two companies also revealed they will jointly participate in a dust and waste recycling project on November 5, marking the 30th anniversary of their cooperation.

Baosteel, the world's fifth largest steel manufacturer and Nippon, the second largest global steel producer, plan to raise the annual production capacity of their co-invested Baosteel Nippon Auto Plate Co Ltd in Shanghai to 1.25 million tons by 2010, soaring 50 percent compared with current capacity.

This will enable the company to become the biggest auto plate producer in China, China Business News reported. Baosteel owns a major 50 percent share of the company, while Nippon has a 38 percent stake.

Industrial insiders believe the cooperation will help the two companies resist acquisition from ArcelorMittal, the worlds' largest steel maker. Baosteel Chairman Xu Lejiang said the group has considered issuing cross-shares with its Japanese partner when Baosteel completes its listing on the overseas market.

For more details, please read the full story in Chinese. (http://www.china-cbn.com/s/n/000004/20071106/020000059435.shtml)

(China.org.cn November 6, 2007)

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