Eastern China’s Ma’anshan Iron and Steel (Magang) has signed an agreement with France’s Asco Industries to establish a wire rod joint venture in Ma’anshan.

The company, known as Mascometal, will produce specialty steel bars and wire rods qualities. It will cater primarily for the Asian automotive industry, Kallanish learns from Asco Industries. The new operation is owned 75% by Magang.

The main products produced by the JV will include engine and transmission parts as well as cold heading qualities, bearings and springs. Upstream supplies of material will be sourced from the two partner companies. Production volumes are targeted at 200,000 tonnes/year as a first step, with an estimated turnover of €200 million ($217m). The company plans to reach progressively a capacity of 500,000 t/y, Asco says in a note.

“Asco Industries will make sure the joint venture will be able to reach quality levels that match [… the Asian] market’s expectations. Ma’anshan Iron and Steel will bring its commercial knowledge of the market and upstream production capabilities,” the note continues.