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ArcelorMittal agrees to cut China auto plant JV size

From Reuters| July 31 , 2009 09:18 BJT

Hunan Valin Steel Co (000932.SZ), partly-owned by ArcelorMittal SA, said on Friday the two sides have agreed to cut the size of their auto plate venture by 500 million yuan ($73.19 million).

Total investment in the venture, based in the central Chinese province of Hunan, will be cut to 4.5 billion yuan from 5 billion yuan previously, the Chinese steel maker said in a statement.

Hunan Valin attributed the adjustment to the "current economic" situation but did not elaborate.

Shareholding structure in the venture, 33 percent owned by ArcelorMittal, remain unchanged, it added.

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