The Wuhan Iron and Steel Corporation in Central China's Hubei Province and the government of the Guangxi Zhuang Autonomous Region held a signing ceremony on Monday in Nanning to build the Wusteel Liusteel (Group) Corporation Ltd.

The two sides will jointly invest 12.7 billion yuan for the venture. The Liuzhou Iron and Steel Corp, the largest industrial enterprise in Guangxi, will join the venture with 6.25 billion yuan of all its net assets while the Wuhan steel will invest a 6.506 billion yuan stake in the venture.

It is learned that it is the first trans-provincial and trans-regional strategic regrouping in the country following China's new steel industry policy launched last July. The move has been approved by the State-owned Supervision and Administration Commission of the State Council.

The venture is aimed at applying for the 10-milion-ton iron and steel base project at Qisha in Fangchenggang, a port city in Guangxi to the state. The planned investment for the project will reach 60-70 billion yuan in order to build a world-class modern iron and steel complex. At the present, the project has been sent to the related state departments for approval, entering into the stage of comparability assessment.

By People's Daily Online