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【Ferro-alloys.com】:Baosteel, along with Baowu Aluminum and Kobe Steel, have agreed to establish a joint venture to produce aluminum sheets for the automotive industry.

China's Baoshan Iron and Steel (Baosteel), along with Baowu Aluminum and Japan's Kobe Steel, have agreed to establish a joint venture to produce aluminum sheets for the automotive industry, according to an announcement made by Kobe Steel on Thursday.

Kobe Steel will hold a 50% stake in the new venture, with the remaining 50% split between Baosteel and Baowu. However, the specific distribution of shares between the two Chinese companies was not disclosed in the statement released on Kobe Steel's website. The formation of this joint venture is still subject to regulatory approval.

The venture, tentatively named Kobelco Baosteel Automotive Aluminum Rolled Products, will be headquartered in Shanghai with a registered capital of 900 million yuan (approximately USD 125 million).

The company will produce aluminum sheets at two production facilities located in Tianjin and Henan Province, catering primarily to China's domestic automobile manufacturers. Baosteel, a subsidiary of China Baowu Steel Group-the world's largest steel producer-brings significant industry expertise to the venture.

This collaboration marks a strategic move for all parties involved, aiming to capitalize on the growing demand for lightweight materials in the automotive sector.

• [Editor:Alakay]