Nippon Steel and Nakayama to form jv

Nippon Steel and Nakayama to form jv

According to the deal signed between Japanese steel producer Nippon Steel Corp (NSC) and Nakayama Steel Works Ltd early this week, NSC will increase its stake in Nakayama Steel Works Ltd to 5% from the current 1.3%. Moreover the two companies will form a joint venture at Funamachi to produce bar, bar in coil and wire rod. The joint venture is scheduled to be formed in April 2005. NSC will hold 60% in the joint venture, while Nakayama Steel Works Ltd will hold the remaining 40%. The new joint venture will buy the existing manufacturing equipment from Nakayama and the products of the mill will be shared between NSC and Nakayama.