Kobe Steel and Novelis close deal for aluminum joint venture in South Korea
OREANDA-NEWS Kobe Steel, Ltd. and Novelis Korea Limited completed arrangements today to establish a joint venture called Ulsan Aluminum, Ltd. to produce aluminum rolled products in Ulsan, South Korea.
Kobe Steel and Novelis Korea announced on May 10, 2017 their agreement to establish the joint venture. Since then, they have been working to set up the new company and complete the necessary arrangements. Today, all arrangements have been completed and the deal has closed.
Plans call for Ulsan Aluminum to provide Kobe Steel with a stable supply of cold-rolled aluminum. This will enable Kobe Steel to continue enhancing its current core businesses of can stock, disks and other aluminum products. Kobe Steel will also be able to further grow its aluminum sheet business to meet the growing demand for automotive closure panels in the expanding Asian market.
Due to stricter environmental regulations worldwide, automobile manufacturers are rapidly moving to make cars lighter. Accordingly, demand for automotive closure panels made out of aluminum is anticipated to further increase.