Japanese steelmaker Nippon Steel Corporation has announced that it has signed a basic agreement with local company Nakayama Steel Works to form a joint venture company with a capital of approximately JPY 50 billion ($344.35 million) with an aim to capture demand amid an increasingly challenging business environment surrounding the steel industry in Japan and abroad.
At the joint venture, Nakayama Steel will hold 51 percent stake, while Nippon Steel will hold 49 percent stake. The joint venture company will build a new electric arc furnace within the premises of Nakayama Steel’s Funamachi Works. Nakayama Steel will manufacture slabs using the new EAF. Nippon Steel will purchase a portion of those slabs or will commission Nakayama Steel to perform additional processes of rolling and then purchase the processed hot-rolled coils and other products from Nakayama Steel.
The joint venture is planned to be formed in March 2026 with the execution of the joint venture agreement in September 2025. In addition, the construction works for the EAF is expected to start in August 2026 to be commenced in 2030 or later.