International Steel Mills
Nippon withdraws from JV with China's Baosteel
Written by Ethan Bernard
July 29, 2024
Japan’s Nippon Steel announced it is withdrawing from a joint venture (JV) with China’s Baoshan Iron & Steel (Baosteel) that serves the Chinese automotive industry.
Nippon and Baosteel established Baosteel-Nippon Steel Automotive Steel Sheets Co. Ltd. (BNA) in 2004. The JV manufactures and sells cold-rolled and hot-dip galvanized sheet in China.
“Today, Nippon Steel agreed with Baosteel to withdraw from the joint venture at the end of the current BNA management period by transferring all of its stake in BNA to Baosteel, subject to receipt of regulatory approvals and other closing conditions,” Nippon said in a statement on July 23.
That management period expires on Aug. 29, according to Nippon.
Nippon said in a statement to Reuters, also on July 23, that the decision was not connected to its attempted purchase of Pittsburgh-based U.S. Steel. That deal, first announced in December and valued at over $14 billion, still faces government regulatory hurdles in the US.
Baosteel said it had agreed to pay about 1.8 billion yuan (~$247 million) for Nippon’s 50% stake in the JV, according to Reuters.
Recall that media reports have stated that Nippon recently hired Mike Pompeo, former Secretary of State under President Donald Trump, as an adviser on the U.S. Steel deal in the US.
A spokesperson for Nippon said the company had no additional comment beyond the release on its website.
Ethan Bernard
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