The deal shall be contingent on acquiring the mandatory regulatory approvals.
The brand new firm will produce aluminum sheets for China’s home car producers at two crops in Tianjin and central Henan province.
The provisional identify of the enterprise, to be established in Shanghai with registered capital of 900 million yuan ($125.5 million), is Kobelco Baosteel Automotive Aluminum Rolled Merchandise.
Baosteel is a subsidiary of the world’s largest steelmaker, China Baowu Metal Group. Kobe is Japan’s third-largest steelmaker.
The businesses had introduced on Feb. 26 that they might perform a feasibility examine on the potential three way partnership.
(By Colleen Howe and Amy Lv; Enhancing by Jason Neely and Jan Harvey)