According to a joint statement from the two companies, the joint venture company (JVSC) will own and lease the new EAF plant to Nakayama Steel, which will be built at Nakayama Steel's Funamachi plant. Some of the slabs to be produced at the plant will be purchased by Nippon Steel, or the slabs will be processed into hot-rolled coils and other products, which will be sold to Nippon Steel.
The capital of the joint venture company is planned to be about JPY 50 billion, while the total expenditure to be made with the investment will be about JPY 95 billion. The company is expected to start operations in March 2026. It was stated that Nakayama Steel will have 51% and Nippon Steel will have 49% shares in the partnership structure, and the voting rights will be decided in the following process.
In the statement, it was noted that with this cooperation, both companies aim to expand their product range and increase their competitiveness by adapting to changing market conditions.
Nippon Steel and Nakayama Steel are expected to continue detailed negotiations on the joint venture agreement in the coming period.
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