New Delhi, Aug 13 (UNI) World's largest steel maker ArcelorMittal today said it has inked a pact with Hunan Valin Steel Group for the production and sales of electrical (silicon) steel.
The 50:50 JV, named Valin ArcelorMittal Electrical Steel Co Ltd, has a registered capital of 2.6 billion RMB (Renminbi is the currency of the People's Republic of China), will build cold rolling and processing facilities for the production of non-grain oriented (NGO) and grain oriented (GO) electrical steels.
The total investment is estimated at 6.5 billion RMB, and have an annual production of 4,00,000 tonnes NGO and 2,00,000 tonnes GO steel, the company said in a statement.
The companies had signed an auto sheet JV agreement in June.
Valin Lian'gang, a subsidiary of Valin Steel Tube and Wire has signed a supply agreement with the joint venture. It has also signed a technology agreement for supply of high-quality hot-rolled substrate to the JV.
''Our JV will start production in 2010 and will supply competitive high-end products to a high requirement electrical steel market,'' Valin Liangang General Manager Zheng Baiping said.
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