Japanese steelmaker Nippon Steel and UAE-based manufacturer of hot dip galvanized steel sheets Al Ghurair Iron & Steel (AGIS), a subsidiary of Al Ghurair Group, have entered into a strategic alliance.
Under this agreement, Nippon Steel will make an equity investment in AGIS through a share transfer by which Nippon Steel will gain 20 percent of voting rights in AGIS, while AGIS becomes an equity method affiliate of Nippon Steel for accounting purposes.
Nippon Steel stated that, with this investment, they will be able "to capture the emerging flat steel products demand in the construction field of MENA [Middle East and North Africa] and West Asia through the supply of hot rolled coils as raw material to AGIS."