Formosa Plastics buys into Australia/China iron ore JV

TAIPEI – Taiwan’s Formosa Plastics Group (FPG) has agreed to invest US$1.15 billion in a joint venture owned 88% by Australia-based Fortescue Metals Group (FMG), the world's fourth largest iron ore producer, and 12% by China’s Shanghai Baosteel Group Corp. Formosa Plastics will spend US$123 million to take a 31% stake in the JV and will provide US$527 million in capital expenditure for the first stage of development.