| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Download our free ebook on Advances in Corrosion Control Coating Technology

Paint and Coatings Industry News

Main News Page

Deal to Amp Up Coated Steel Supply

Friday, August 17, 2012

More items for Coating Materials

Comment | More

U.S. and Asian production of coated steel building and construction products has just received a $1.36 billion shot in the arm with a new joint venture by a leading steel producer and coatings maker.

 Nippon Steel

 Nippon Steel

The signing ceremony in Singapore included (from left) BlueScope Steel CEO Paul O’Malley, Nippon Steel President Shoji Muneoka, and BlueScope Steel Chairman Graham Kraehe.

NS BlueScope Coated Products will be a 50-50 joint venture of Australia’s BlueScope Steel Ltd. and Japan’s Nippon Steel Corp.

The new venture will produce hot-dip galvanized sheets, painted sheets, roll-formed building products and other coated products on both continents.

The venture is expected to capture a larger share of the $40 billion annual building and construction sector, the companies said in announcing the deal.

New Markets

For Australia’s BlueScope, the joint venture might just turn things around, as business operations have been ailing recently, according to various reports.

BlueScope said it would receive about $540 million in net proceeds through Nippon Steel’s 50% acquisition of BlueScope’s interest in the businesses after allowing for taxes, minority interests and transaction costs.

 Steelscape, a supplier of metallic-coated and pre-painted steel in the U.S., is a BlueScope Steel Company and will be a part of the new joint venture.


Steelscape, a supplier of metallic-coated and pre-painted steel in the U.S., is a BlueScope Steel Company and will be a part of the new joint venture.

The joint venture will also help facilitate BlueScope’s entry into new markets—home appliances, for example, the company said. BlueScope has been focused on production of metallic paint and coatings for the construction sector.

BlueScope Chairman Graham Kraehe said Nippon Steel’s investment “clearly highlights the long-term strategic value created by BlueScope over many years.”

Kraehe called the deal “a great vote of confidence in our strategy, global reach, capabilities and our people. It will enhance BlueScope’s growth and opens an exciting new era for the company.”

Other Terms

The joint venture will consist of 14 entities now operated by BlueScope.

The businesses, which employ about 3,000 people, are in Indonesia, Malaysia, Thailand, Vietnam, Singapore and Brunei and North America (Steelscape and ASC Profiles).

In addition to sharing management of the joint venture, Nippon Steel will supply it with substrates (hot-rolled coils and cold-rolled coils) for hot-dip galvanized sheets.

BlueScope will appoint the chief executive of NS BlueScope Coated Products. NSC will appoint the chairman and a number of key executives to assist with business development and the introduction of new technology and products.

The transaction is expected to close by the end of March 2013, pending regulatory approval, Nippon said.

Past Collaboration

The companies have worked together for more than 40 years on 65 different technology projects.

Also, in 2010, the two signed a comprehensive long-term technical “tie-up agreement” concerning the joint development of next-generation surface-treated sheet steel for the building and construction market, Nippon said.

In addition, Nippon Steel is set to become the world’s second-largest steel maker (after ArcelorMittal) when it merges with Japan’s Sumitomo Metal Industries Ltd. Oct. 1, the company said.


Tagged categories: Acquisitions; BlueScope Steel; Business operations; Coatings technology; Mergers; Nippon Steel Corp.

Comment Join the Conversation:

Sign in to our community to add your comments.

International Paint LLC
Rapid cure, high temperature lining

AkzoNobel introduces Enviroline 405HTR, an ultra-low VOC lining. 405HTR offers rapid return to service, and excellent chemical resistance at high temperatures.

Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

Wasser Coatings offer a complete range of Moisture Cure Urethane (NEPCOAT approved) systems in addition to Polyurea membranes and linings(NSF).

New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films

Sherwin-Williams Protective & Marine Coatings

With 4,000 distribution points and 3,700+ years of experience, Sherwin-Williams delivers the products, support and expertise you need, right where you need it.

Polyval Coatings
Polyflex® Polyurea Linings

Polyflex™ new Polyurea Geotextile Membrane System has been specifically engineered to protect the environment in containment applications.

SSPC: The Society for Protective Coatings

Join SSPC and Enhance
Your Career !

Mitsubishi Gas Chemical America
Performance Amine 1,3-BAC

A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.

Jessup Manufacturing Company
More Traction for Extreme Marine Conditions

Jessup Safety Track® 3800 Military Grade peel-and-stick non-skid tapes and treads provide extra slip resistance for decks. MIL-PRF-24467C Type XI, Black & Gray.

Carboline Company
Fireproofing Solutions

Pyroclad® X1 Thermo-Lag® Pyrocrete® – protecting against hydrocarbon and jet fires, explosions, and cryogenic spills.

HoldTight Solutions Inc.

Our HoldTight®102 salt remover & flash rust preventer prevents flash
rust by removing surface contaminants. It has no equal; only wannabees.
Contact us for your
nearest distributor.
(800) 319.8802

Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker

EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us

© Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail