Kobelco Angang Auto Steel Co
Kobe Steel and China's Angang Steel Company, a subsidiary of Anshan Iron & Steel Group Complex, have established a joint venture known as Kobelco Angang Auto Steel Co in China to produce and sell cold-rolled high-strength steel sheet which has a huge demand in automobile industry.
The two parent companies signed an agreement on 17 October, 2013, to form the joint venture and then undertook the necessary incorporation procedures to set up the new company. After receiving approval from the Chinese government, Kobe Steel and Angang Steel were able to establish Kobelco Angang Auto Steel to be headquartered at Angang’s steelworks, Anshan Base, in Anshan, Liaoning Province.
Kobelco Angang Auto Steel will construct a continuous annealing line with a production capacity of 600,000 tons per year to make cold-rolled high-strength steel with a tensile strength of 590 MPa or higher.
According to the Press Release, Angang will supply the joint venture with the substrate coils, with production slated to start in early 2016. The new company will combine Kobe Steel’s world-class automotive cold-rolled high-strength steel technology with Angang’s solid business base to meet growing demand for high-strength steel in China which also harbors the world’s largest automobile market. Total investments are anticipated to reach 1.75 billion yuan (US $291 million).
The new company Kobelco Angang Auto Steel would have a total capital of around 700 million yuan (11.6 billion yen) in which Angang Steel owns 51 percent of the venture and balance 49 percent stake by Kobe Steel. The joint venture will employ about 100 people when it reaches full operation with its Chairman from Angang.