The new joint venture, tentatively named NN Steel Joint Company, will own and lease the electric arc furnace equipment and production building. Nakayama Steel will produce slabs at this facility, while Nippon Steel will purchase part of the produced slabs and, if necessary, procure processed products by outsourcing additional processes such as hot rolling to Nakayama Steel.
The objectives of the joint venture were stated as responding to decreasing domestic steel demand and strengthening the sales capabilities and cost competitiveness of both groups. Through this collaboration, Nippon Steel aims to meet customer needs across various sectors, particularly construction, and to increase its market share.
Details of the joint venture are as follows:
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Tentative company name: NN Steel Joint Company
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Business scope: Ownership and leasing of the electric arc furnace equipment and building required for slab production
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Total investment: Maximum 1.055 billion yen (including changes in pricing, exchange rates, and design)
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Equity share: Nippon Steel 49%, Nakayama Steel 51%
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Scheduled establishment: March 2026
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Total investment amount: Maximum 557 billion yen
The electric arc furnace and the building will be installed at Nakayama Steel’s Funamachi plant and leased to Nakayama Steel. Nakayama Steel will carry out slab production at the facility, and Nippon Steel will purchase part of the production or procure products after additional processing.
The establishment and operational launch of the joint venture and overall collaboration are targeted for completion within 2026.
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