Japanese steel manufacturer Nakayama Steel Works has announced an investment and business alliance with Japanese trading company Hanwa and steel manufacturer Yodoko to support the construction of its new electric arc furnace (EDP).
Nakayama Steel Works will raise 8.69 billion yen (US$55.1 million) by transferring Hanwa 5.70 million new shares to a third party and selling 7.36 million of Yodoko's own shares at a price of 666 yen (4.22 dollars) per share. The estimated net revenue of 8.67 billion yen (US$54.9 million) will be fully allocated to the new UFA project between October 2026 and July 2030. The total investment required for the project is estimated at approximately 95 billion yen ($601.5 million) and could reach 105.5 billion yen ($668 million).
Upon completion of the transaction, scheduled for early October 2026, Hanwa's voting rights will be increased from 14.89% to 20.48%, making Nakayama Steel Works an equity subsidiary of Hanwa, while Yodoko will become the company's second largest shareholder with a 10.95% stake..
Through these alliances, Hanwa will collaborate with Nakayama Steel Works on raw materials procurement, steel sales, waste recycling, and carbon-free products, while Yodoko will support the development of higher-value-added products, as well as the expansion and stable supply of EDP-based hot-rolled coils. Nakayama Steel Works expects that the new furnace will replace most of the slabs from external sources, which currently account for about half of the slab needs, which will increase supply reliability and reduce carbon dioxide emissions.
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