Kobe Steel and Jiangsu Aluminium Aluminum Company to Establish a Joint Venture Company

Japan's Kobe Steel Group has announced that it has signed a letter of intent for cooperation in China's Jiangsu Chang'na Aluminum Industry Co., Ltd. Both parties will establish a joint venture company in Baotou, Inner Mongolia, China and sign a definitive agreement next spring.

The joint venture company will be established in January 2013. The name of the company has not yet been determined. Kobe Steel holds 80% of the company's shares, and Chang Aluminum Co., Ltd. holds 20% of the company's shares. The total investment of the two companies is approximately 40 billion days. Yuan (about 510 million U.S. dollars).

After its establishment, the company is expected to start production in 2015. It will mainly produce aluminum coils and aluminum sheets for automobiles and beverage cans, with an annual production capacity of approximately 200,000 metric tons.

In recent years, the demand for aluminum sheets in the Chinese market has grown rapidly. The main products of the Kobe Steel Group are aluminum coils and aluminum sheets. The joint venture established with Jiangsu Changlu Aluminum Company will meet the growing demand of the Chinese market and will help Consolidate its position in China and even the entire Asian market.