Holdings Co for the acquisition of equity interest in China based Baosteel Special Steel Shaoguan. The loan is aimed to finance a part of JFE's spending of CNY 686 million (USD 104 million) to acquire a 50% stake in Baosteel Special Steel Shaoguan, a wholly owned subsidiary of its Chinese partner Guangdong Shaoguan Iron and Steel Songshan. SGIS' parent company is China's biggest steelmaker state controlled Baowu. SGIS holds the other 50% in BSSS.
The new joint venture, tentatively named Baowu JFE Special Steel, produces around 1.1 million tonnes per yearof speciality steel bars at its Shaoguan plant in Guangdong province for automobile sector