JFE Steel, Guangzhou Iron and Steel Start Cold Rolling Mill Building

JFE Steel announced on Wednesday the firm started the construction work for cold rolling project at Guangzhou JFE Steel Sheet Company, which is joint venture with Guangzhou Iron and Steel Enterprises Holdings. They build cold rolling mill with annual 1.8 million tonnes of output capacity and no.2 continuous galvanizing line with 400,000 tonnes of capacity for around US$ 820 million starting operation in 2010. JFE Steel tries to meet growing demand for high valued steel for automobile and appliances through the expansion. The joint venture builds new pickling and tandem cold rolling mill, continuous annealing line with 1 million tonnes of annual output capacity and no.2 continuous galvanizing line. The parent companies agreed for the expansion in March and get approval from National Development and Reform Commission People’s Republic of China in June and signed agreement for the expansion in July. The joint venture was established in 2003 starting operation of no.1 continuous galvanizing line with 400,000 tonnes of output capacity in March 2006. The joint venture is in Nansha district of Guangzhou city, Guangdong province to supply high valued sheet steel for local manufacturers, mainly for transplants of Toyota Motor, Nissan Motor and Honda Motor. The joint venture increases the capital from US$ 75 million to US$ 443 million while JFE Steel reduces the share from 51% to 50%.