Nakayama Steel Works announced that it will establish capital and business partnerships with Hanwa and Yodoko for its new electric arc furnace (EAF) project. Under the agreements, the company will issue new shares through a third party allocation and transfer a portion of its treasury shares.
Following completion of the transactions, Yodoko will become one of Nakayama Steel's major shareholders, while Hanwa will become an equity method affiliate of the company.
All proceeds from the capital transactions will be used for Nakayama Steel's new electric arc furnace project. With the new facility, the company plans to produce most of the slab required for its operations internally and reduce its reliance on external slab supplies.
Cooperation with Hanwa and Yodoko to cover multiple areas
The partnership between Nakayama Steel and Hanwa will cover raw material procurement, product sales and green transformation initiatives.
Cooperation with Yodoko will focus on developing high value added products produced by the electric arc furnace and expanding their applications.
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