Nippon Steel Corp. said Tuesday it will enter the house-building business in China by licensing its construction technology to a Chinese building materials firm.
Japan's leading steelmaker said it will license Beijing New Building Materials Co. to use its high-tension steel frame technology.
The Nippon Steel construction boasts strong durability as well as heat resistance, and costs are almost equal to that of wood-frame houses, the firm said.
The Chinese housing market is expected to grow significantly due to a government program encouraging people to have their own homes.
The program calls for construction of about 10 million houses every year until 2005.
The two firms plan to build more than 30,000 houses in the period, with the aim of posting sales of more than 150 billion yen.