Nakayama Steel Works Secures $55.1 Million for EAF Initiative
Nakayama Steel Works will raise $55.1 million for a new electric arc furnace (EAF) project via share allocations. This strategic partnership with Hanwa and Yodoko aims to enhance raw material procurement and product development, crucial for carbon-neutral steel production.
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Nakayama Steel Works plans to raise JPY 8.69 billion ($55.1 million) through a third-party share allotment to Hanwa and the disposal of treasury shares to Yodoko, scheduled for early October 2026. The overall investment for the new electric arc furnace (EAF) project is estimated at JPY 95 billion ($601.5 million), with potential costs reaching JPY 105.5 billion ($668 million).
Hanwa will increase its voting rights in Nakayama Steel Works to 20.48%, while Yodoko will hold a 10.95% stake. This partnership aims to enhance supply security and develop carbon-neutral products, as the new EAF is expected to replace a significant portion of externally sourced slabs.
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