Japan’s Nippon Steel Corporation and Nakayama Steel have signed a basic agreement to establish a joint venture and form a business alliance. Under the agreement, both companies will jointly invest in the new venture, which will build an electric arc furnace (EAF) at Nakayama Steel’s Funamachi Works. Nakayama Steel will use the EAF to produce steel products, which Nippon Steel will purchase.
The joint venture will be majority-owned by Nakayama Steel with a 51pct stake, while Nippon Steel will hold the remaining 49pct.
Nakayama Steel will manufacture slabs using the new EAF. Nippon Steel will either buy a portion of the slabs or have Nakayama Steel carry out additional processing, such as rolling, and then purchase the finished hot-rolled coils and other products.
Construction of the EAF is scheduled to begin in August 2026, with operations expected to start in 2030 or later, according to the companies.