Iron Ore Sales Business in China
Building a new sales structure in China, the world's largest importer of iron ore
ITOCHU and Tewoo Group Co., Ltd. (hereinafter “Tewoo Group”), a major trading company in China, established TEWOO-ITC Global Trading Co. Ltd., a joint venture to handle imports, processing and sales of iron ore and other steelmaking resources. The ITOCHU Group (including overseas subsidiaries) will have a 49% interest in the new company, and the Tewoo Group a 51% interest, with investment totaling US$14.7 million and US$15.3 million respectively. 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.