Fangda Partners, Sullivan & Cromwell and Baker McKenzie FenXun have advised on China Oriental Group’s USD2.66 billion joint ventures with steel manufacturing giant ArcelorMittal, marking one of the biggest foreign direct investments in the nation’s steel industry in recent years.
The Hong Kong-listed China Oriental and the world’s second-largest steel producer will each hold a 50% stake in the two joint ventures, involving technology licensing and raw material supply.
Fangda, led by partners Pan Siyuan and Sam Wang, acted as China Oriental’s PRC counsel. Partner Claudia Yun provided IP support. Partner Ng Kay Ian at Sullivan & Cromwell advised on Hong Kong law.
Baker McKenzie FenXun, led by its joint operation senior partner Cherrie Shi, acted as ArcelorMittal’s counsel. Senior partner Alex Gong at FenXun Partners, and partners Richard Gao, Laura Liu and Han Bing assisted with the real estate, M&A, antitrust and capital markets issues, respectively.
The two joint ventures will produce electrical steel grade hot-rolled coil substrates and new energy soft magnetic materials, suitable for manufacturing electric vehicles and green power generation facilities.
As a private company, China Oriental Group lacks the capital to compete with state-owned enterprises in the global market while it also faces weak domestic demand for steel. The company said it hoped to transform into a green industry firm through this partnership, striving to establish a leading factory producing components for new energy sectors in China.
