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Baosteel yesterday set up a joint venture with privately owned Jiangsu Yinhuan Precision Steel Tube Co Ltd in Jiangsu to produce nuclear power evaporator steel tube. The joint venture's registered capital is 200 million yuan, with 65 percent of shares owned by Baosteel.

The deal makes Baosteel the first company in China to produce the Inconel 690 U, nuclear power industry's key material. The project is expected to be put into production in July 2009.