NN STEEL Corporation announced that at a Board of Directors meeting held on November 26, 2025, it was resolved to conclude a joint venture agreement with Nippon Steel Corporation regarding the establishment of a joint venture. The joint venture will become a consolidated subsidiary of the Company. Purpose of Establishing the Joint Venture.
The Company and Nippon Steel have reached an agreement to establish a joint venture and have concluded the joint venture agreement. The conclusion of the joint venture agreement is based on " Notice Regarding the Establishment of a Joint Venture with Nippon Steel CORPORATION and the Conclusion of a Memorandum of Understanding for a Business Alliance" disclosed on May 9, 2025, and aims to establish a joint venture to own and lease the new electric arc furnace facilities and buildings to the Company in order to ensure a stable supply of electric arc furnace products with low CO2 emissions. The Company will lease the newly constructed electric arc furnace at the Company's Funamachi Plant from the joint venture to manufacture steel slabs.
The Company will supply the steel slabs manufactured in the new electric arc furnace to Nippon Steel, and some of the steel slabs manufacturing in the new electric arc furnace will be supplied to the Company as hot-rolled coil and other hot-rolled products. With the conclusion of this joint venture agreement, the Company will take a major step toward the realization of the new arc electric furnace project, which is the most important element to achieve " Notice Concerning Investment in the New Electric Arc Furnace and Long-Term Targets to Realize the Long-Term Vision of Nakayama Steel Works Group " disclosed on May 9, 2025. In this plan, the Company has set specific target KPIs by 2033.
To achieve these targets, the Company will first increase its production capacity of electric arc furnace steel slabs by collaborating with Nippon Steel through this joint venture agreement, aiming to realize the Company's growth strategy after the operation of the new electric arc furnace. The Company will further strengthen its competitiveness by reducing CO2 emissions in the manufacturing process and expanding resource recycling, as well as by responding to the growing demand for electric arc furnace products.
