Wuhan Steel, Liuzhou Steel Start Venture in Guangxi Region

Wuhan Iron & Steel Group, China's fifth-biggest steelmaker, and Liuzhou Iron & Steel Group formed a venture in Guangxi, China.

Wuhan Steel will own 80 percent of the venture while the local government in Liuzhou, Guangxi will have 20 percent, Liuzhou Iron & Steel Co., the listed unit of Liuzhou Steel said in a statement today. The venture will have registered capital of 44 billion yuan ($6.4 billion).

Wuhan Steel, the owner of Wuhan Iron & Steel Co. in the central province of Hubei, will pay for the stake in cash, while the local government will use Liuzhou Steel's assets to pay for its holding, according to the statement.