BlueScope and Nippon Steel have confirmed the formation of a new joint venture (JV) with Nippon Steel Corporation (NSC) of Japan, forming the world’s second largest steelmaker following the completion of the venture.

 

The new 50:50 JV, dubbed NS BlueScope Coated Products, is expected to capture an increased share of the $40 billion per annum building and construction sector in ASEAN and North America.

 

BlueScope says the JV will open previously inaccessible markets for the company, citing expected supply of whitegoods manufacturing products to Asia.

 

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

 

The joint venture will comprise BlueScope’s current building products businesses in ASEAN (Indonesia, Malaysia, Thailand, Vietnam, Singapore and Brunei) and North America (Steelscape and ASC Profiles).

 

The announcement of the JV comes after BlueScope posted a $1 billion loss for the 2011-12 financial year in its results. However, the company maintained a positive outlook, saying the company had reached a transformational point.