Marubeni-Itochu Steel to Launch Steel Processing JV in Zhengzhou

Marubeni-Itochu Steel announced on Friday the firm agreed with Shanghai Baosteel International Economic & Trading of Baosteel Group of China to launch joint flat steel processing center in Zhengzhou, Henan of China. They launch the operation with annual 130,000 tonnes of processing capacity in May 2013 to serve local automobile industry. Marubeni-Itochu Steel tries to follow growing demand in China through the fourth automotive steel processing center.

Marubeni-Itochu Steel controls 51% share of the joint venture, MI Bao Metal Processing Zhengzhou with 49% share by Shanghai Baosteel International Economic & Trading. The joint venture invests around 7.7 billion yen to build plant with a large slitter to processes coated steel and sheet steel. The plant mainly processes products from Baosteel while the plant also processes high grade Japanese materials.

Marubeni-Itochu Steel cooperates with Chinese major steel makers as joint steel service center with Pangang Group. Marubeni-Itochu Steel has already 3 automotive steel processing centers in China while the firm has total 9 plants with 1.4 million tonnes of annual processing capacity in China.

Zhengzhou city encourages development of automobile industry and electronics industry. Nissan Motor increases Chinese output by 500,000 units to 1.5 million units in 2015. Zhengzhou plant is one of the major plants for Chinese growth.