Japanese steelmaker Nippon Steel is considering stopping specialty steel production for auto parts at its plant in China's Zhejiang Province, according to a report from state-run news agency Nikkei. The products which are currently being produced at the plant will be supplied from Japan.
Zhejiang Nisshin Worthington Precision Specialty Steel, a joint venture established in 2014 with Marubeni-Itochu Steel and the US-based steelmaker Worthington Industries, currently operates the plant in Zhejiang. Nippon Steel Nisshin which is a wholly owned subsidiary of Nippon Steel owns 55 percent stake.
The plant has an annual capacity of 120,000 mt for extra-strong steel for drive parts.
The company invested more than $180 million (JPY20 billion) in the plant.