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  September 22, 2003
JFE Holdings, Inc.
JFE Steel Corporation
Guangzhou Iron & Steel
   Enterprises Holdings Ltd.




  A basic agreement pertaining to the establishment of a Joint Venture to produce and market
hot-dip galvanized steel sheets in the city of Guangzhou, China has been reached.
 

JFE Steel Corporation (President:Fumio Sudo) and Guangzhou Iron & Steel Enterprises Holdings Ltd. (Chairman: Yuan Jinxi) have reached a basic agreement to establish a joint venture to produce and market hot-dip galvanized steel sheets primarily for the automobile industry in Nansha Development Zone, Guangzhou, Guangdong Province, China. The joint venture is targeted to meet the increasing demand forecast for high-quality steel sheets for the automobile industry in the country. The agreement was executed by Mr. Sudo and Mr. Jinxi in Guangzhou today.

Following the agreement, the two companies will continue to work out the details and expect to conclude a joint venture agreement by the end of October, 2003. The companies plan to commence commercial operation by April, 2006.

The joint venture announced today is the first step of collaboration. The two companies also have agreed to conduct a study on cold rolled steel sheets, taking various elements into consideration at a future stage.

<Outline of the Joint Venture>
(1) Name : GUANGZHOU JFE STEEL SHEET COMPANY LTD.
(2) Objective : Primarily to meet the growing requirements for hot-dip galvanized steel sheets for the automobile industry in China
(3) Products : Hot-dip galvanized steel sheets (mainly for the automobile industry, some for electric appliance and construction applications)
(4) Facility : Hot-dip galvanizing line with an annual capacity of 400,000 tons/year
(5) Employees : Approximately 200
(6) Location : Nansha Development Zone, Guangzhou, Guangdong Province
(7) Total Investment : Approximately 170 million US dollars (approximately 20 billion yen)
(8) Registered capital : Approximately 76 million US dollars (approximately 9 billion yen)
(9) Ownership :
JFE Steel Corporation 51%
Guangzhou Iron & Steel Enterprises Holdings Ltd. 49%
(10) Schedule : Reaching a joint venture agreement by the end of October, 2003
Commencing commercial operation by April, 2006

(Reference)

 

 
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