Arcelor may invest in Shanghai steel plant

Japan's Nippon Steel and Baoshan Iron & Steel have agreed to establish a Yn6.Sbn cold-rolled
steel plant in Shanghai. The plant will initially be a 50-50 joint venture but Nippon Steel
said that Arcelor, the world's largest steelmaker headquartered in Europe, may also invest
in the venture. Production is due to begin in 2005.
Steel demand has been
increasing rapidly in China in tandem with the fast-growing economy. The construction and
car industries and oil and gas pipelines consume large amounts of steel. The plant will
produce the type of steel sheet that many automakers in China currently buy from
overseas.