SHENYANG, Feb. 23 -- China's Anshan Iron & Steel Group Corp. has inked a deal with British Stemcor to set up a joint venture, an official of the Chinese company said Tuesday.
Anshan, the state-owned parent company of Ansteel based in northeast China, and Stemcor will each hold a 50 percent stake in the new company, whose main functions include planning and implementing investment programs of the two collaborators, said Li Dongwei, a vice manager of international business told Xinhua.
However, he refused to reveal the amount of the total investment in the new company, saying both sides were busy preparing for registration in Britain.
The joint venture holding company, to be based in London, is expected to start operation in March and will purchase about two thirds of British USS Ltd., according to Li.
Zhang Xiaoguang, general manager of Anshan who signed the agreement with his counterpart Julian Verden of Stemcor in Brussels last week, said the planned purchase of a stake in British USS Ltd is expected to expand the group's overseas service network and promote its business in the international market.
In late 2007, the Chinese steelmaker formed a joint venture, Ansteel Spain SL, with Stemcor to market steel products in Spain, according to Stemcor's website.