New Delhi, Mar.5 : The state-owned metals trader, China Minmetals Corp, has announced plans to set up an iron and steel joint venture in India.
This will be the first major Chinese investment in the Indian steel industry.
The facility, built by China Minmetals with Xinxing Pipes Group and three Indian companies, will have an annual production capacity of 2.5 million tons of steel and six million tons of iron ore pellets, a company statement said.
The project's first phase will involve a total investment of 72 million dollars. It will be 55 percent owned by the Chinese companies and 45 percent owned by their Indian partners, the statement said.
China Minmetals, according to the China Daily, wants to cash in on rising demand for steel products in India, one of the fastest growing markets in the world.
Last week, China's top iron ore trader Sinosteel Corp said it plans to build a steel plant in India.
In 2007, the company posted profits of 6.8 billion yuan, about double that of the previous year. Its revenue was 21.8 billion dollars in 2007, compared with 18.9 billion dollars in 2006.