The three main steel giants – Nippon Steel Corp., Baosteel and ArcelorMittal – have announced a joint venture plan.

They made the decision to build a new steel plant in China that will produce automotive steel sheet like high-grade steel sheet coated by zinc alloy.

And then they will supply to Japanese automakers production. Baosteel holds 50 percent of shareholders, and Nippon steel Corp. and ArcelorMittal will have 30 percent and 12 percent of stakes respectively. The partners are planning to increase investment to ￥20 billion for enlarging output.