JOIN USNovelis, a subsidiary of Hindalco Industries, has entered into a joint venture agreement with Japan’s Kobe Steel.
The joint venture, to be named Ulsan Aluminum, will be formed by Novelis selling Kobe Steel 50% of its ownership interest in its Ulsan, South Korea facility for $315 million.
Through the venture, Novelis and Kobe Steel will jointly own and operate the Ulsan facility, with each company remaining responsible for its metal supply and commercial relationships. The joint venture transaction is expected to close in September 2017, subject to customary closing conditions, a release said.
By entering into this joint venture, Novelis will better utilise its rolling capacity at Ulsan, which will continue to focus on automotive and specialty sheet in order to meet the increasing demand for lightweight rolled aluminum products across Asia, the release said.
“As a company, we constantly identify business opportunities that allow us to deliver maximum value across our global operations and we continue to see Asia as a strategic market,” Novelis president and chief executive officer Steve Fisher said.