It is reported that Pangang Group International Economic & Trading Corporation Ltd has linked up with Japan's Marubeni Itochu Steel Inc's Hongkong Co and China Steel Global Trading Corp to establish a JV in Chongqing to produce steel for making automobile, motorcycle and household appliances.

As per report, the JV includes steel products processing base and logistical distribution center, with annual capacity of 200,000 tonnes. The JV is expected to achieve CNY 1.2 billion output value per annum after its coming on stream next Mar.

Mr Yu Zisu GM of the Pangang Group said the JV has started construction in the new zone of Northern part of Chongqing, and the three companies will spend CNY 100 million in the first stage construction. He said that "We will introduce technology and equipments from Panzhihua, Taiwan and Japan to supply high accuracy products for the local enterprises."

Mr Yu said "We are very confident about the local automobile and motorcycle market. Local automobile and motorcycle producers purchase nearly 400,000 tonnes of flat products a year from Pangang Group. And their transport costs will be lowered considerably after the establishment of the JV.”