Chinese JV overcomes iron ore price hike

China Ocean Shipping (COSCO) and Anshan Iron and Steel Company (AISC) have become strategic partners to minimise the effects of iron ore price hikes. Under the joint venture agreement, COSCO will provide low-cost transportation for iron ore imports and the export of steel products for Anshan Steel. In return, AISC will be the long-term supplier of steel plates for COSCO?s shipbuilding and ship repair facilities currently under construction at Dalian.

AISC plans to have an annual production capacity of 20 million tonnes by 2010 and will invest in iron mines and cooperate with domestic and foreign enterprises. COSCO, together with AISC, aims to create a shipyard with an annual output of two million tonnes.