China's Shanxi Coking Coal, Taigang launch JV

BEIJING, May 30 (Reuters) - China's Shanxi Coking Coal Group and top stainless steel maker Taigang Group have tied up to launch a new coking coal company that will supply the steel maker, the official Xinhua news agency reported on Saturday.

Xinhua cited Bai Peizhong, chairman of Shanxi Coking Coal, as saying his group will hold 60 percent of the new company, called Shanxi Coal-Steel Energy Development Company, while Taigang Group will own the remainder.

Shanxi Coking Coal Group is China's largest producer of coking coal, a key feedstock for the steel industry.

The report did not say how much the new company was expected to produce, but said that it would engage in coal mining, dressing and marketing and would ensure coal supplies for Taigang Group, parent of listed firm Taigang (000825.SZ).

Taigang is slated to take over smaller rivals in its home Shanxi province as part of a consolidation plan for the steel sector published by the government in March. (Reporting by Jason Subler; Editing by Dhara Ranasinghe)