China's No. 1 steelmaker Shanghai Baosteel Group has formed a joint venture with China State Shipbuilding Corp. to operate a 10 billion yuan (US$1.3 billion; euro1 billion) civilian shipyard on the Yangtze River.
China State Shipbuilding, the second-largest ship builder in the world by orders, will take a 65 percent stake in the venture, with Baosteel holding the remaining 35 percent, Baosteel said in a statement reported Monday by state media.
The venture will operate two production lines at a facility already under construction on Changxing Island north of Shanghai which is due to become China's biggest, with an annual production capacity of 4.5 million tons.
The China State Shipbuilding-Baosteel venture has more than 7 million tons worth of preorders, with orders fully booked through 2011, the statement said. It is due to begin production in May.
Shanghai-based Baosteel produces high-grade steel used in auto, shipbuilding and other key industries.
China State Shipbuilding Corp., which incorporates 25 large- and medium-sized shipyards, produces tankers and container ships, as well as warships and submarines for China's navy.
The 8-kilometer-long (5-mile-long) shipyard at Changxing, involving some US$3.6 billion in investment, is expected to quadruple Shanghai's annual shipbuilding capacity to 12 million tons by 2015.
Shanghai handles about half of China's shipbuilding orders.
China State Shipbuilding, the second-largest ship builder in the world by orders, will take a 65 percent stake in the venture, with Baosteel holding the remaining 35 percent, Baosteel said in a statement reported Monday by state media.
The venture will operate two production lines at a facility already under construction on Changxing Island north of Shanghai which is due to become China's biggest, with an annual production capacity of 4.5 million tons.
The China State Shipbuilding-Baosteel venture has more than 7 million tons worth of preorders, with orders fully booked through 2011, the statement said. It is due to begin production in May.
Shanghai-based Baosteel produces high-grade steel used in auto, shipbuilding and other key industries.
China State Shipbuilding Corp., which incorporates 25 large- and medium-sized shipyards, produces tankers and container ships, as well as warships and submarines for China's navy.
The 8-kilometer-long (5-mile-long) shipyard at Changxing, involving some US$3.6 billion in investment, is expected to quadruple Shanghai's annual shipbuilding capacity to 12 million tons by 2015.
Shanghai handles about half of China's shipbuilding orders.