(Yicai) March 24 -- Chinese steelmaker Yongjin Technology Group and its partners will invest CNY1.9 billion (USD257 million) to set up a stainless steel plant in Türkiye to meet demand there and across Europe.

The new factory, which will be able to produce 400,000 tons of cold-rolled steel sheets and strips annually, will be built in the Yalova Machinery Specialized Organized Industrial Zone in northwestern Türkiye, the Zhejiang province-based company announced recently.

One production line will make 80,000 tons of high-end products per year, while the other will turn out 320,000 tons of general-purpose products. The construction period is expected to take 24 months.

To fund and operate the factory, Yongjin will form a joint venture with two Chinese partners. Yongjin will hold an 80 percent stake, while the other two investors will have 15 percent and 5 percent shares, respectively.

The project will enable Yongjin to leverage Türkiye’s strategic location and favorable trade conditions with the European market, expand its overseas business, and strengthen its brand internationally, the company said.

Yongjin is a leading producer of cold-rolled stainless steel products that are used in home appliances, vehicles, and medical equipment. It has five production bases in China, two in Vietnam, and plans to begin construction of a new plant in Thailand soon.

The firm produced more than 2.8 million tons of cold-rolled stainless steel in 2023, when its overseas sales tallied CNY4.1 billion, making up over 10 percent of the total. The firm’s annual earnings report for that year also identified Arçelik A.Ş., the Turkish owner of home appliance brands Beko and Grundig, as one of its key international clients.

After rising as much as 1.4 percent intraday, Yongjin's stock price  [SHA: 603995] closed 0.5 percent higher at CNY21.26 (USD2.90), while the Shanghai Composite Index ended up 0.2 percent.

Editor: Emmi Laine