Panzhihua New Steel and Vanadium is to launch a joint venture with Messer China.

According to Alibaba.com, Panzhihua New Steel and Vanadium has signed an agreement with Messer Griesheim (China) Investment Company Ltd, to launch a joint venture in China’s southwestern Sichuan Province.

The joint venture will involve manufacturing and selling various kinds of industrial gases, and according to the agreement, it will have a registered capital of RMB 500m.

Panzhihua New Steel and Vanadium will provide the equipment, along with other physical assets worth RMB 200m, and will have a 40% stake in the total capital.

The rest of the money will be provided by Messer China in cash for a 60% stake in the registered capital.

The plant will be built in Panzhihua city, which is the base of state-owned Panzhihua Iron and Steel Group Company.

Panzhihua New Steel and Vanadium noted that the joint venture will improve the company’s efficiency of industrial gas production outsourcing; meanwhile, it also eases the company’s capital pressure.