Japan's largest steel producer by capacity Nippon Steel and fellow steel producer Nakayama Steel Works plan to build a new 1.2mn t/yr electric arc furnace (EAF) slab steel mill in western prefecture Osaka, targeting to begin commercial operations after 2030.
Nippon Steel and Nakayama Steel Works on 26 November agreed to establish a joint venture by March 2026. Nippon Steel will hold a 49pc share in the joint venture, while Nakayama Steel Works will own the remainder.
The joint venture will build a new EAF slab steel mill by investing up to ¥105.5bn ($675mn) and lease it to Nakayama Steel Works' Funamachi plant in Osaka. Nakayama Steel Works will then manufacture slab steel and sell a part of the output to Nippon Steel.
Nippon Steel aims to enhance competitiveness by expanding its supply of goods with stronger demand like hot-rolled coils through the partnership with Nakayama Steel Works, on the back of expected domestic demand reduction for steel.
Nippon Steel also made a final investment decision on its ¥870bn EAF expansion project, aiming to start full-scale production before March 2030. Nippon Steel will build three new EAF facilities including expansion and modification under the investment plan.
