In a statement released on Friday, the company stated that efforts to achieve stable profitability were unsuccessful and that the business could not be sold, leading to the decision.
The timing of the withdrawal and other details will be finalized following discussions with joint venture partner state owned Krakatau Steel.
According to the announcement, production is scheduled to end on April 30, while shipment and sales activities are planned to stop from June 30. The company added that losses arising from the withdrawal process have not yet been determined.
Krakatau Osaka Steel recorded sales revenue of JPY 25.3 billion, equivalent to USD 161 million, in the financial year ended December 2024, while posting a net loss of JPY 1.3 billion over the same period.
Osaka Steel and Krakatau Steel established the joint venture in 2012. Although the company reached profitability in 2021, it has continued to report net losses since 2022.
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