Baosteel, rivals to form JV

Baosteel Group Corp, China's biggest steelmaker, and two rivals in the southern province of Guangdong will form a 35.9 billion yuan venture to help build a 60 billion yuan steel plant.

Baosteel will take 80 percent of Guangdong Iron & Steel Group, as the venture will be known, by contributing 28.7 billion yuan in cash, SGIS Songshan Co said yesterday in a statement to the Shenzhen Stock Exchange. SGIS's parent company and Guangzhou Iron & Steel Group will contribute existing steel assets to the venture. Details are still under discussion, SGIS said.

Shanghai-based Baosteel needs to ensure 10 million tons of older steel capacity in Guangdong is shut down to win the final approval to build the 10 million metric ton a year plant in Zhanjiang, Guangdong province.