The new company will be named “NN Steel LLC” and will be responsible for the ownership and leasing of facilities located in the Taisho district of Osaka.

Under the joint venture structure, Nakayama Steel will hold a 51% stake, while Nippon Steel will own 49%. Following phased investments, the final investment amount is expected to reach ¥50 billion, with total investment projected at ¥95 billion and a maximum of ¥105.5 billion.

The project aims to support decarbonization in the steel industry and restructure the domestic steel production base. Electric arc furnaces emit less CO₂ compared to traditional blast furnaces and are increasingly being adopted in steel production. However, due to their high costs, such facilities represent a significant financial burden for individual investors.

The NN Steel LLC project is expected to diversify capital investments while also contributing to the establishment of a stable steel billet supply system.