Nippon Steel to set up its first overseas CR stainless JV

Sichuan Province-based Chinese stainless steel producer Southwest Stainless Steel, along with Japan-based Sumitomo Corporation and Nippon Steel & Sumikin Stainless Steel, have inked a joint investment agreement to set up a new company to produce cold rolled stainless steel sheet in Nantong in China's Jiangsu Province, as reported by Chinese and Japanese media sources. This will be Nippon Steel's first cold rolled stainless steel sheet joint venture to be set up overseas.
 
Accordingly, the companies will invest a total of RMB 1.5 billion ($238 million) in the project, the annual production capacity of which is expected to reach 200,000 mt. The production line, which is due to be put into production in June 2014, will mainly produce 0.3-3 mm cold rolled stainless steel sheet. The annual sales revenue of the new facility is expected to exceed RMB 5 billion ($793.65 million).
 
China's Sichuan Southwest Stainless Steel Co. will own a 40 percent stake in the new company, while the Japanese companies Nippon Steel and Sumitomo will hold 25 percent and 35 percent stakes respectively.