BlueScope Steel has formally announced today (18 June 2013) the completion of its joint venture with Nippon Steel Sumitomo Metal Corp. to form NS BlueScope Coated Products (NS BlueScope). The 50:50 joint venture encompasses BlueScope’s ASEAN and North American building products businesses and carries a combined enterprise valuation of US$1.36 billion.
According to Mr. Sanjay Dayal, NS BlueScope’s newly assigned Chief Executive; NS BlueScope now possesses the financial flexibility to grow its footprint across the region. “BlueScope and Nippon Steel share a long-standing 40-year relationship and the collaborative potential places NS BlueScope in an advantageous position to extend our market leadership and break new ground across Asia. To achieve this, we will be tapping into the combined innovation and R&D capabilities as well as leveraging the greater accessibility to new customer networks and product areas such as home appliances,” said Dayal.
In light of the transition, operations and management at NS BlueScope Malaysia will remain unchanged. All existing arrangements and working relationships with suppliers and customers will stay in place and will not be affected by this change.
Mr. Somkiat Pintatham, Country President – Malaysia, Singapore, and Brunei who will continue to lead operations then went on to ass that Malaysia has been identifies as one of the key investment markets and will undoubtedly benefit from leading-edge technology transfer and future growth opportunities. “NS BlueScope gives us the opportunitu to share in NSSMC’s cast technological base which will allow us to learn new expertise and best practices from one of the world’s most innovative steel companies. As an industry, we stand to learn from some of the best talent and raise our own standards of excellence,” he said.
Mr. Junichi Murakami, Vice President, Business Development, NS BlueScope Coated Products, added that NS BlueScope is well poised to perform in the current challenging steel industry. He said, “More specifically, this partnership will provide us with new prospects meant to cater to manufacturers of domestic appliances with our high quality steel; opening new market opportunites for the joint venture. This in return would be beneficial to our customers by providing them with a greater range of products as well as a significant competitive advantage as both parties are leaders in the steel industry.”
On the local front, Pintatham stated that government projects will continue to buoy domestic steel demand. “The rollout of projects under the Economic Transformation Programme is keeping the local building and construction sector healthy while the property market continues to remain bullish. The environment will be competitive, but with our added resources, there is vast potential for us to expand our market segments.”
NS BlueScope comprises of 3,000 employees across 29 manufacturing plants across ASEAN and North America. This will include NS BlueScope Malaysia’s manufacturing plants for roll-forming and coated steel building products that are located in Kapar, Shah Alam, Sabah, Sarawak, Singapore, and Brunei.