According to a report by the Asian Nikkei Review, Japanese steelmaker JFE intends to go into partnership with China’s largest steelmaker to manufacture and sell steel powder, which is used to create car parts.
A 50:50 joint venture was recently formed between JFE Holdings and Baosteel Metal, a subsidiary of Baowu Steel Group, and the plan is to produce pre-mixed iron powders coated with copper and nickel alloys.
A factory is to be constructed on the outskirts of Shanghai (at a cost of US$15.7 million) and it is hoped that by 2018 steel powder production will start.
The plant will mix alloyed metals with powdered iron, purchased externally, and ultimately the powders will be placed into molds to make transmission gears and engine parts.
According to ANR, vehicle sales in China are forecast to grow 5% in 2017.
Source: Asian Nikkei Review.