China's Anshan Iron & Steel Group Corp has inked a deal with UK group Stemcor to set up a JV, the Chinese company said.

Anshan, the state-owned parent company of Ansteel based in northeast China, and Stemcor will each hold a 50% stake in the new company.

Its functions will include planning and implementing investment programmes of the two collaborators, said Li Dongwei, a vice manager of international business.

The JV, to be based in London, is expected to start operation in March and will purchase about two thirds of British USS Ltd.

Zhang Xiaoguang, general manager of Anshan who signed the agreement with his counterpart Julian Verden of Stemcor in Brussels last week, said the planned purchase of a stake in British USS Ltd is expected to expand the group's overseas service network and promote its business in the international market.