China Knowledge reported that Kailuan Energy Chemical Co Ltd which is principally engaged in the coal mining, washing, processing and distribution, on December 20 will set up a joint venture with Chengde Iron & Steel Group Co Ltd to develop an existing coking project in Chengde, Hebei Province.

In the JV which will have a registered capital of CNY 778 million, the Shanghai listed firm will hold a 51% stake with an investment of CNY 396.78 million in cash. The remaining 49% equities will be held by Chengde Iron & Steel Group which currently owns the coking project.

The project which has an annual output capacity of 600,000 tons in the first phase is expected to start the second phase operation at the end of this year with production capacity of 1.1 million tons. The JV will be responsible for the project construction in the third phase that will have output capacity of 2.1 million tonnes per year bringing the project's total capacity to 3.8 million tonnes.

(Sourced from China Knowledge)