Nippon Steel to Dissolve JV with China's Baoshan after 20 Years

Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. REUTERS/Issei Kato/File Photo Purchase Licensing Rights
Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. REUTERS/Issei Kato/File Photo Purchase Licensing Rights
TT

Nippon Steel to Dissolve JV with China's Baoshan after 20 Years

Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. REUTERS/Issei Kato/File Photo Purchase Licensing Rights
Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. REUTERS/Issei Kato/File Photo Purchase Licensing Rights

Nippon Steel will dissolve its joint venture with China's Baoshan Iron & Steel it said on Tuesday, ending two decades of cooperation when their existing shareholders' agreement expires at the end of August.

Nippon Steel will transfer its 50% stake in the joint venture to Baoshan, it said. In a separate statement Baoshan said it had agreed to pay about 1.8 billion yuan ($247 million) for the holding.

The joint venture was producing and selling cold-rolled steel sheets and hot-dip galvanized steel sheets for automotive use in China. Nippon Steel did not provide a reason for dissolving the partnership originally established in 2004, Reuters reported.

The Nikkei business daily, which first reported the news, said the company had decided to shift its attention to the US and India.

The company's production capacity in China will be cut by 70%, but it will still keep around 1 million metric tonnes per year thanks to its joint business with Wuhan Iron and Steel, another unit of the China Baowu Steel Group, Nikkei said.

Nippon Steel said in a statement to Reuters the decision was not linked to its bid for US Steel which has led to some US scrutiny of the Japanese company's assets in China.

"Consultations on this matter have been held since September 2022," Nippon Steel said. The company announced the deal to buy US Steel in December 2023.

Nippon Steel said last week it had hired former US Secretary of State Mike Pompeo to help with its effort to close the US Steel acquisition. Pompeo is visiting Japan this week, according to local media reports.



Saudi-Indian Business Council: Modi’s Visit to Launch Strategic Private Sector Partnership

A photo of Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in 2019 (SPA)
A photo of Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in 2019 (SPA)
TT

Saudi-Indian Business Council: Modi’s Visit to Launch Strategic Private Sector Partnership

A photo of Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in 2019 (SPA)
A photo of Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in 2019 (SPA)

Indian Prime Minister Narendra Modi is expected to arrive in Saudi Arabia on Tuesday for an official visit during which he will meet with Crown Prince Mohammed bin Salman to discuss trade, investment, and energy cooperation.

In anticipation of the visit, the Saudi-Indian business community has expressed optimism about strengthening bilateral ties and advancing toward deeper economic integration through the launch of new joint projects that aim to establish a strategic partnership between the two countries’ private sectors.

Abdulaziz Al-Qahtani, Chairman of the Saudi-Indian Business Council, told Asharq Al-Awsat that India is Saudi Arabia’s third-largest trading partner in terms of exports and fourth in terms of imports, underscoring the importance of their economic relationship.

Al-Qahtani noted that trade between the two countries has grown significantly in recent years, with total bilateral trade reaching approximately $157 billion in 2023—a 20% year-on-year increase.

India’s major exports to the Kingdom include chemical products, organic and inorganic materials, pearls, precious stones, metals, copper, and aluminum. In return, Saudi imports from India consist of plant-based and mineral products, pharmaceuticals, apparel, iron goods, machinery, electrical equipment, and vehicles.

Regarding new initiatives and agreements, Al-Qahtani highlighted two private sector agreements signed in February, signaling both nations’ serious commitment to expanding cooperation in trade, investment, and economic development.

He added that the council is currently working on several initiatives, including activating the bilateral investment promotion and protection agreement, implementing the double taxation avoidance treaty, and proposing frameworks for preferential treatment. These steps aim to enable unconventional projects to benefit from advantages available in both countries.

Al-Qahtani also noted the rising presence of Indian companies in the Saudi market, with more than 50 firms currently operating in the Kingdom. Several of these companies have recently opened regional headquarters in Saudi Arabia.

The sectors with the highest Indian activity include construction—with 20 companies in this field—along with health, training, and technology. “We are now set to begin cooperation in the manufacturing sector as well,” Al-Qahtani said.