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KOBE STEEL TO FORM WELDING JOINT VENTURE IN CHINA.
TOKYO, Nov 1 Asia Pulse - The Kobe Steel Group (TSE:5406), Matsushita Industrial Equipment Co., Ltd. and China's Tangshan Kaiyiian Electric Co., Ltd. entered into an agreement today to establish a joint venture in China to manufacture and market welding materials.
To be named Kobe Welding of Tangshan Co., Ltd., the new company will be established in November in Tangshan, Hebei Province, east of Beijing. The joint venture will be 52 per cent owned by the Kobe Steel Group. Kobe Steel, Ltd. will have a 48 per cent equity share and affiliate Shinsho Corporation 4 per cent. Matsushita will hold 25 per cent and Tangshan Kaiyuan Electric will hold 23 per cent.
A company statement said the joint venture will be capitalized at 1.45 billion yen (US$11.82 million). Kobe Welding is expected to employ about 180 people by 2004. The chairman will be Liu BaoCheng, who is currently chairman of Tangshan Kaiyuan Electric. The president will come from Kobe Steel.
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Source: HighBeam Research, KOBE STEEL TO FORM WELDING JOINT VENTURE IN CHINA.