Bekaert and Angang Steel Establish Steel Cord Joint Venture
Belgium’s Bekaert Group and China’s Angang Steel Company are reported to have formerly established a joint venture company on October 30. Called Angang Bekaert Tire Cord Co, the new venture is situated in Chongqing’s Shuangqiao Industrial Park and will engage in wire rod processing and the production of tyre cord for the domestic market.
The joint venture factory will have an annual capacity of 100,000 tonnes and an output value of CNY 2 billion (£181.8 million). Phase one of the project is anticipated to begin production in the first half of 2009. On May 24 Angang and Bekaert signed a memorandum of understanding to form a strategic supplier-user relationship. Both parties outlined a 50/50 joint venture arrangement on June 8 and officially inked the contract on July 16.