China's Anshan Iron and Steel Group Corp has inked a deal with British Stemcor to set up a joint venture, an official of the Chinese company said yesterday.

Anshan, the state-owned parent company of Ansteel based in northeast China, and Stemcor will each hold a 50 percent stake in the new company, whose main functions include planning and implementing investment programs of the two firms, said Li Dongwei, a vice manager of international business.

The London-based joint venture holding company is due to start operations in March and will buy two thirds of British USS Ltd, Li said.