Baosteel to set up shipbuilding JV in Guangzhou

Baosteel Group Corp, China's largest steel maker by output, has inked an agreement with China Shipping (Group) Co and state-owned shipbuilding giant China State Shipbuilding Corp (CSSC) to set up a shipbuilding joint venture (JV), said the company in a statement on its website.

The new venture, which will be located in Guangzhou, South China's Guangdong province, will have 2.12 million deadweight tons of shipbuilding capacity annually, with an eye to mainly build large-size ships to carry crude oil and iron ore, the statement said. But how much stake Baosteel will hold in the JV is unavailable to date.

Furthermore, Baosteel signed another deal with CSSC last March to invest RMB 10 billion (US$1.29 billion) for a 35% stake in a civilian shipbuilding JV, which will build two shipyards on Changxing Island at the mouth of the Yangtze River. Each yard will consist of two docks with a total of 4.5 million deadweight tons of shipbuilding capacity.