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ITOCHU Announces Iron Ore Sales Joint Venture with Tewoo Group
July 1, 2014
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO, hereinafter “ITOCHU”) and Tewoo Group Co., Ltd. (headquartered in Tianjin, China; Zhang Xiaoxuan, President; hereinafter “Tewoo Group”) announced today that they have established TEWOO-ITC Global Trading Co. Ltd. (headquartered in Tianjin, China; US$30 million capital), a joint venture to handle imports, processing and sales of iron ore and other iron raw materials in the Chinese city of Tianjin.
The ITOCHU Group (including overseas subsidiaries) will have a 49% interest in the new company, and the Tewoo Group a 51% interest, with investment totalling US$14.7 million (approximately ¥1.47 billion) and US$15.3 million (approximately ¥1.53 billion) respectively.
The Tewoo Group is a major state owned trading company based in Tianjin, with core operations including metals, minerals and energy resources. It has a proven track record of processing and selling iron ore throughout China.
This joint venture is the first time a Japanese trading company has tried to sell iron ore in partnership with a Chinese state owned trading company. It will be able to reliably procure iron ore and other materials through ITOCHU’s overseas network, and establish a value chain based on the Tewoo Group’s domestic mineral processing facilities and sales network in China. Access to such a wide range of quality raw materials will enable it to make the most of its resources and cater to demand for iron ore in China as it continues to grow in the future.
Outline of Tewoo Group Co., Ltd.
State-owned trading company based in Tianjin. Core operations include minerals and energy resources, chemicals, automotive materials, cotton, lumber, logistics and real estate.
|Year ending December 2012 (January 2012 – December 2012)
Sales: US$33,443 million (approx. ¥3.3 trillion)