Mittal Steel's first venture in China

Global steel giant Mittal Steel Co has bought its first stake in China's steel industry, purchasing a 37 per cent share of a state-owned steel mill, a news report said on Friday.

The government on Thursday approved the US$337 million purchase of shares in Valin Iron and Steel Co Ltd in the central province of Hunan, the official Xinhua news agency said.

China is one of the world's biggest steel consumers but foreign investment in its domestic industry is still small.

Mittal Steel, based in the Netherlands, is the world's largest steel producer.