Nippon Steel Corporation has finalized a joint venture agreement with Nakayama Steel Works to establish a new company, jointly funded with a 49pct-51pct capital split between Nippon Steel and Nakayama Steel. The JV will oversee construction of a new electric arc furnace (EAF) at Nakayama Steel’s Funamachi Plant, with Nakayama Steel manufacturing steel slabs for purchase by Nippon Steel under a long-term business alliance.
With domestic steel demand expected to continue declining, Nippon Steel said the partnership will help enhance product competitiveness, broaden its product lineup, and improve its ability to meet diverse customer needs across sectors such as construction. The collaboration also forms part of Nippon Steel’s wider strategy to reinforce cost competitiveness by leveraging group-wide strengths.
Construction of the new EAF facility is expected to begin at the end of next year, with operations scheduled to start in 2030. The JV will build the EAF and related buildings within the Funamachi Plant site and lease the facilities to Nakayama Steel. Nakayama Steel will produce slabs using the new furnace, while Nippon Steel will purchase part of the output or commission Nakayama Steel to perform additional rolling and processing as required.
