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
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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.



Moroccan Utility ONEE Granted $340 Million in Loans for Energy Transition

File photo of a police officer standing near a Moroccan national flag near the main stadium during preparations for the FIFA Club World Cup in Agadir, December 10, 2013. REUTERS/Amr Abdallah Dalsh
File photo of a police officer standing near a Moroccan national flag near the main stadium during preparations for the FIFA Club World Cup in Agadir, December 10, 2013. REUTERS/Amr Abdallah Dalsh
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Moroccan Utility ONEE Granted $340 Million in Loans for Energy Transition

File photo of a police officer standing near a Moroccan national flag near the main stadium during preparations for the FIFA Club World Cup in Agadir, December 10, 2013. REUTERS/Amr Abdallah Dalsh
File photo of a police officer standing near a Moroccan national flag near the main stadium during preparations for the FIFA Club World Cup in Agadir, December 10, 2013. REUTERS/Amr Abdallah Dalsh

Moroccan water and power utility ONEE said it has been granted 300 million euros ($340 million) in loans from the European Investment Bank (EIB) and German state lender KfW to support integration of renewable energy into the national grid.

The financing package comprises 170 million euros from the EIB and 130 million euros from KfW, the utility said on Friday, adding that the money will be used to expand its electricity transmission network by 730km.

ONEE plans to invest $19 billion in its electricity development plan through 2030, the year Morocco will co-host the World Cup soccer tournament, together with Spain and Portugal.

The plan aims to increase installed renewable energy capacity to 56% of the country's total electricity capacity by 2027, three years ahead of the 2030 target, according to Reuters.

Currently, installed renewable energy capacity stands at 45%, or 5.5GW.

ONEE said it will add 15GW of installed electricity capacity, including 12GW from renewable sources by 2030.

Last week ONEE signed a deal with the United Arab Emirates' TAQA to build a 1,400 km high-voltage transmission line with a capacity of 3,000 megawatts linking Western Sahara’s renewable energy sites to central Morocco.

Coal still accounts for more than 70% of Morocco's energy production.

Seeking to diversify its coal-dependent energy sector, Morocco began in April a tendering process to build a liquefied natural gas terminal in the Mediterranean port of Nador.