SHANGHAI — China's Anshan Iron and Steel Group said Monday it had signed an equity investment agreement with US mill Steel Development Company that includes the construction of five new US plants.
The first plant will be built in Amory, Mississippi and will mainly target the southeastern United States and Latin American markets, the Chinese company, also known as Ansteel, said on its website.
It said the deal, which was signed Friday, was structured so as to meet US government requirements that steel used in infrastructure projects funded by a massive American stimulus package come from local manufacturers.
The Mississippi state government will help subsidise the Amory plant, the statement said, without providing further details.
No financial terms were disclosed.
Chinese commerce ministry spokesman Yao Jian said the government supported efforts by the country's steel companies to move into overseas markets.
"The cooperation between China and the United States in the manufacturing sector, including the steel industry, will help improve (China's) manufacturing technologies, the use of clean energy, and so on," he said at a briefing. "I think it is a good thing."
Yao noted that the ministry had not yet received Ansteel's application regarding its investment plans.
