Nippon Steel is taking a stake of at least 35 per cent in a US$840m cold-rolled steel sheet plant with China's largest steelmaker Baoshan, said Nikkei. Baoshan will take a 50 per cent stake, with Arcelor of Luxembourg also negotiating participation in the venture. Baoshan began construction of the plant at the end of last year. Nippon Steel and Baoshan are also negotiating a more comprehensive alliance in the field of mining resources and technology.
The joint venture will seek an overseas listing by 2010. This will help Nippon take a stake in state-run Baoshan, with Baoshan also seeking a cross-shareholding arrangement with the Japanese steelmaker.