In a statement, JFE said it is taking a stake in Baosteel Special Steel Shaoguan Co. Ltd., which it will operate as a joint venture with the company’s parent, Guangdong Shaoguan Iron and Steel Songshan Co. Ltd. The company is a part of China BaoWu Steel Group Corp. Ltd. 

JFE has been supplying steel to the Chinese automotive market through a number of domestic joint ventures, but up until now, it was directly exporting high-grade special bar to the country. The joint venture, however, will allow it to produce and sell from within China to Japanese automakers operating there.  

“Baosteel Special Steel Shaoguan has a proven record of producing and selling specialty bar steel in China, and JFE Steel has established a long-term relationship of trust with the BaoWu Group through other joint ventures, both of which were key factors in the decision to form the new joint venture,” JFE said in a statement.  

The company employs about 500 and can produce approximately 1.1 million metric tons of special bar annually.