U.S.-based Worthington Industries Inc. has inked a joint venture deal for a new steel factory in Pinghu, Zhejiang.
The facility near Shanghai will produce cold rolled strip steel primarily for the automotive industry with an annual capacity of approximately 130,000 tons.
Worthington will join Nisshin Steel Company Ltd. and Marubeni-Itochu Steel Inc. in the venture which will be called Zhejiang Nisshin Worthington Precision Specialty Steel Company Ltd. Worthington will own a 10% stake in the joint venture with the option to increase ownership and Japanese partners Nisshin and MISI will own 55% and 35%, respectively.
Construction is expected to begin immediately following government approval with production expected to begin in the fourth quarter of 2015.
Specific capitalization and financing values for the JV were not released.