Chinese steel producer Anshan Iron and Steel Group to set up JV holding firm in the UK

Chinese steel producer Anshan Iron and Steel Group signed a deal with Stemcor that will see the Chinese firm set up a JV holding firm in the UK. Stemcor is the world's largest independent steel trader. The agreement will see the Chinese steel producer set up a joint venture holding company in the UK called Anshan Steel UK Holding Company, which will acquire the USS processing center.

The joint venture company will acquire a two-thirds stake in the USS processing center. The investment is in line with Anshan Steel's general development strategy for the expansion of its overseas business. The deal was announced by a senior official of the Chinese firm Tuesday.

Anshan Iron and Steel Group, the state-owned parent company of Ansteel based in northeast China, and Stemcor will each hold a 50 per cent stake in the new company, whose main functions include planning and implementing investment programs of the two collaborators, Xinhua news agency reported.

According to Xinhua, Anshan Iron and Steel Group vice manager of international business Li Dongwei, revealed the firm’s plans, but declined to disclose 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 Dongwei.  

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.

Anshan Iron and Steel Group Corporation (Ansteel) is situated in Anshan, Liaoning Province. The Anshan area abounds with the rich iron ore resources. The proved reserves make up one fourth of the total reverses in the country. Additionally, the rich magnesite, limestone, claystone, manganese are distributed over the Anshan area, which are the uncommon auxiliary materials for the metallurgical industry.

By 2015, Ansteel plans to get into the world top 10 steel makers and become a super large-sized transnational group corporation with a powerful main business in iron and steel, diversified industry structure and strong international competitiveness.

24 February 2011