China's Baosteel, Hansteel launch $2.6-bln-joint venture

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                         　BEIJING, Dec. 16 (Xinhua) -- Baosteel Group, China's largest steel maker, has launched a 19.4-billion-yuan (2.6 billion U.S. dollars) joint venture with Hansteel Group.
    The National Development and Reform Commission gave nod to the plan of building the 19.4-billion-yuan steel plant in Handan, a city of north China's Hebei province in December 2005.
    The venture plant, Hangang Hanbao Iron and Steel Co., will be able to produce 4.6 million tons of high grade steel plate annually upon completion. Hansteel and Shanghai-based Baosteel each invest six billion yuan for its registered capital.
    The new plant is a win-win strategy for the two steel giants and will help to optimize the nation's steel industry structure, said Liu Rujun, chairman of Hansteel Group, at the opening ceremony on Saturday.
    First-stage construction of the joint venture, including a 3,200-cubic-meter blast furnace, is expected to be finished in the first half of 2008.
    The venture is expected to be put into operation at the end of 2010 when overall construction is finished.
    Output of crude steel at Baosteel and Hansteel in 2006 stood at 22.5 million tons and 6.4 million tons, respectively.
               
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