Japan-based Nippon Steel Corporation has announced that it has decided to enter into a share purchase agreement to acquire 49.99 percent shares in G Steel Public Company Limited (G Steel) and 49.90 percent shares in G J Steel Public Company Limited (G J Steel), which are integrated steel production mills that produce hot rolled steel sheets from electric arc furnaces in Thailand, from Kendrick Global Limited. The transaction which is worth $300 million is expected to be completed as soon as the preconditions for the transaction are satisfied, which is February 2022.
Through this acquisition, Nippon Steel said that it will capture hot rolled steel demands in Thailand, which are expected to grow steadily, by utilizing the management base of G Steel and G J Steel for manufacturing and sales as well as improving their productivity and quality. Investing in these two electric arc furnace steelmakers will also contribute to the Japanese steelmaker’s efforts to become carbon neutral by 2050.
Both G Steel and G J Steel are the only steel companies which have integrated steel production facilities from electric arc furnaces to hot rolling processes in Thailand, and they manufacture and sell general grade hot rolled steel products which constitute the largest market segment. Together, the two companies have a hot rolled production capability of approximately three million mt and have sold hot rolled steel products for general purposes, such as for domestic construction industries in Thailand.