Huafon Group and Tsingshan Holding Group, two leading companies in Wenzhou, Zhejiang province, sign an agreement on Aug 27 to establish a joint venture in Indonesia. (Photo/zj.zjol.com)

Huafon Group and Tsingshan Holding Group, two leading companies in Wenzhou, Zhejiang province, signed an agreement on Aug 27 to establish a joint venture in Indonesia.

They plan to invest approximately $3 billion in the joint venture, which is expected to produce approximately 12 million metric tons of coke fuel ever year.

Huafon Group is among the top 500 Chinese companies focusing on the new materials industry, while Tsingshan Holding Group is a Fortune Global 500 company specializing in stainless steel production.

You Xiaoping, chairman of the board of Huafon Group, said they will draw on Tsingshan's expertise in integrating global resources and building industrial chains to jointly build a world-leading steel and chemical industrial base.

You added that the cooperation marks another milestone for Huafon in expanding abroad, after the company established industrial bases and sales branches in many countries involved in the Belt and Road Initiative, such as Turkey, Vietnam, India and Pakistan.

Xiang Guangda, chairman of the board of Tsingshan, said it is the first time that Tsingshan has cooperated with another Wenzhou company to go global. He expressed hope that more Wenzhou companies will expand abroad in the future.

(Executive Editor: Wenxi Yang)