China’s Baosteel Co. Ltd has cooperated with Jiangsu Yinhuan Precision Steel Tube Co., Ltd. to set up a joint venture company - Baoyin Special Steel Tube Co., Ltd.

The company will devote to develop the special tube products which to be used on nuclear power plant.

Baoyin Special Steel Tube Co., Ltd has been expected to finish its construction and start to run for production in July, 2009.

Baosteel will hold 65 percent of stake in this new company and Jiangsu Yinhuan Precision Steel Tube Co., Ltd. will have 35 percent.

The new company symbolizes the first steady step towards the localized production of steam generator tubes for nuclear power plant in China.

China will become the fourth country to produce and supply such high level special tubes after France, Japan and Sweden, especially for steam generator Inconel 690-U tubes for nuclear power plant usage.