Loan for Steel Product Manufacturing and Sales Business of NIPPON STEEL CORPORATION’s US Joint Venture Subsidiary
Supporting Global Business Expansion of the Japanese Steel Industry
- Region: North America
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on March 10 a loan agreement amounting to up to USD465 million with AM/NS Calvert LLC (Calvert), a U.S.-based joint venture between NIPPON STEEL CORPORATION (NIPPON STEEL) and Luxembourg-based ArcelorMittal S.A. The loan is co-financed with Mizuho Bank, Ltd., MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to USD775 million.
The loan is intended to provide the funds required by Calvert*1
, which was founded in 2014, to build a new electric arc furnace (EAF) for its steel sheet manufacturing and sales business in the State of Alabama in the United States.
The United States is the world’s second largest steel products consuming country, where stable demand for steel products for automobiles, mainly from Japanese manufacturers, infrastructure and other purposes, is expected to continue. NIPPON STEEL aims to utilize the new EAF to further strengthen Calvert’s ability to supply a full range of products, including state-of-the-art steel products in North America, and to obtain alternative manufacturing processes for steel products in addition to the blast furnace process for future global business expansion. Overall, the loan will support NIPPON STEEL’s global business expansion, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the global expansion of their businesses through its various financial facilities and schemes for structuring projects.
After founding Calvert, NIPPON STEEL and ArcelorMittal jointly acquired ThyssenKrupp Steel USA LLC in February 2014.