Posted on 26 Jul 2024
According to the report, Nippon Steel, Japan's leading steel company, has decided to exit its joint venture with China's Baoshan Iron & Steel, reducing its steel production capacity in China by 70%. The partnership, formed in 2004 to produce and sell automotive steel plates, will end as Nippon Steel sells its shares for about TWD$77 billion. This move reflects challenges faced by Japanese automakers in China, especially with the rise of electric vehicles.
Nippon Steel plans to focus more on markets in the United States, India, and Southeast Asia and is considering acquiring U.S. Steel. This withdrawal marks a significant shift in a relationship that has been pivotal since the 1970s when Nippon Steel helped modernize China's steel industry. Despite the retreat from this joint venture, Nippon Steel continues its collaboration in China with Wuhan Iron and Steel on a project for producing thin steel plates for food cans.
Source:Yieh
