Acquisition of G Steel and G J Steel, integrated steel mills in Thailand

Nippon Steel Corp. will acquire shares in G Steel and GJ Steel to make them subsidiaries. G Steel and G J Steel are the only integrated flat steel producers in Thailand with facilities including electric arc furnaces (EAFs) and hot strip mills, supplying hot-rolled steel sheets for general purpose.

The aim for NSC is to become an insider as a local integrated steel mill in Thailand, thereby capturing the growing local demand for hot-rolled steel sheets for general purpose use.

On January 21, 2022, NSC entered into a share purchase agreement with funds managed by Ares SSG, currently the largest indirect shareholder in G/GJ Steel. As a result, NSC will also launch a tender offer for the remaining shares of G/GJ Steel.

Global Business Strategy of NIPPON STEEL

  • Expand integrated production capacity in overseas markets where steel demand is growing
  • Achieve “100 million ton global crude steel capacity per annum” through capacity expansion in India, and M&A of local integrated steel mills in Asia

Thailand Steel Market Overview

  • Second largest demand after Vietnam (approx. 18 million tons) in ASEAN (approx. 80 million tons)
  • As Thailand has developed as a competitive exporter of industrial products, its domestic steel demand from the manufacturing sector and demand for high-quality steel is one of the highest among ASEAN countries
  • The steel demand for general purpose from civil engineering and construction etc. accounts for 60% of the steel demand in Thailand

Thailand, a developed manufacturing export base with a high ratio of manufacturing businesses among ASEAN countries, is an important market for NSC.

Since the 1960s, NSC has established downstream mills in Thailand, where NSC has been supplying semi-finished products from Japan to meet demands for high-quality steel from local manufacturing businesses, such as automotive and home appliance businesses.

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