Japanese steelmaker Kobe Steel has announced that it has established a joint venture called Kobelco Angang Auto Steel with Chinese steelmaker Angang Steel, a subsidiary of Anshan Iron & Steel Group, to produce cold rolled high-strength steel sheet for the Chinese automotive industry.
Kobelco Angang will construct a continuous annealing line with a production capacity of 600,000 mt per year to make cold rolled high-strength steel with a tensile strength of 590 MPa or higher. Angang will supply the joint venture with the substrate coils. Production in the plant is scheduled to begin in early 2016. Total investments are anticipated to reach RMB 1.75 billion (about $285 million).
Kobelco Angang is headquartered at Angang's steelworks, Anshan Base, in Anshan, Liaoning Province. Angang owns 51 percent of the venture, while Kobe Steel holds a 49 percent share. The joint venture will employ about 100 people when it reaches full operation.
China is the world's largest automobile market, while Chinese car production is anticipated to increase by roughly 50 percent over the next 10 years.
