Xinhua reported that Jinhuan steel, a leading private steel manufacturing company based in China's Hebei province, and Rigid Building Systems, a Houston based steel building company, have officially opened their JV Rigid Global Buildings.
Mr Liu Baozhong president of Jinhuan Steel said that Jinhuan Steel invested about USD 11 million in Rigid Building Systems and now holds 51% of the shares of Rigid Global Buildings, and the two owners of Rigid Building Systems, hold 12% of the JV each, with the remaining 25% of shares being held by Citibank.
The marriage between Jihuan and Rigid is a win-win choice for both companies, said Mr Liu, who said he was very impressed by Rigid when he visited the US company for the first time in 2007. When Rigid Building Systems ran into trouble in 2008 because of the recession and went red, Mr Liu said he thought it was good timing for his company to forge a partnership with the US company.
After about two years' negotiation and preparation, the two companies finished the acquisition procedures and announced the formation of Rigid Global Buildings in January 2011.
Mr Liu said that thanks to their partnership, Jinhuan can learn advanced management and mature technologies from its US partner, and Rigid, with investment from China, has been able to survive and will become better in the future.
Mr Liu said that Rigid Global Buildings has been in black in the first several months of the year and some laid off workers are coming back.
He added that at its peak, Rigid Building Systems has some 600 employees and it had to slim its workforce to about 200 when the recession took its toll. Now, the company has begun hiring and expected to hire more workers in the future.
Rigid said that the new partnership between Rigid Building Systems and Jinhuan Steel is a leading example of how international investments are helping US companies.
Mr Frederick J Campara co owner of Rigid Building Systems said that since the beginning of 2011, some 30 jobs have been created at Rigid Global Buildings. He added that Chinese investors are helping create jobs in Houston.
Mr Liu said that, instead of merely focusing on the US and Chinese markets, he and his US partners are planning to expand business internationally. They are eyeing the Middle East steel manufacturing market.
(Sourced from Xinhua)
