Japanese steelmaker Nippon Steel Corporation has entered into a basic agreement with Nakayama Steel Works to establish a joint venture with an investment of approximately JPY 50 billion ($344.35 million). The collaboration aims to strengthen their position amid increasing challenges in the global and domestic steel industry.
Nakayama Steel will hold a 51 percent stake in the venture, with Nippon Steel owning the remaining 49 percent. As part of the agreement, a new electric arc furnace (EAF) will be constructed within Nakayama Steel's Funamachi Works. Nakayama Steel will produce slabs using the EAF, with Nippon Steel either purchasing a portion of these slabs or commissioning additional rolling processes before acquiring hot-rolled coils and other steel products.
The joint venture is scheduled to be formalized in March 2026, following the execution of the agreement in September 2025. Construction of the EAF is set to begin in August 2026, with operations expected to commence in 2030 or later.
