Jiangsu Province-based Chinese company Suzhou Hesheng Special Materials has stated that it will establish a joint venture (JV) called Suzhou Weijie New Material with major Japanese steelmaker JFE Steel Corporation and JFE Shoji Trade (Shanghai) to produce composite materials used in household appliances and higher-end construction materials.
The total investment in the JV will be RMB 300 million ($46 million), with the registered capital totaling RMB 100 million ($15 million). According to the statement, Suzhou Hesheng Special Materials will provide RMB 86 million ($13 million) of the registered capital (i.e., 86 percent), JFE Steel Corporation will provide 10 percent and JFE Shoji Trade (Shanghai) will provide four percent.
Suzhou Hesheng Special Materials stated that the market for composite materials used in household appliances and high-end construction materials is developing fast in China.