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Nissan, Posco prepare steel processing center

Nissan, Posco prepare steel processing center

Nissan Motor Co. and Korean steelmaker Posco are preparing to set up a center to process steel sheet products in Japan, the Japanese automaker said Thursday.
The two companies set up a joint venture, POS-YPC, that will establish the steel processing facility in Kawasaki, south of Tokyo, to help ensure a stable supply of steel sheets for Nissan, it said.
Posco's unit in Japan owns a 70 percent stake in POS-YPC, and Nissan's subsidiary Nissan Trading Co. holds the remainder, according to Nissan.
Japan's third-largest car maker by sales volume was forced to halt some of its domestic production plants in 2004 due to a steel sheet shortage.
Nissan's major suppliers, Nippon Steel Corp. and JFE Holdings Inc., had problems keeping up with strong demand because of growing consumption in China.
The move to strengthen ties with Posco, the world's fourth-largest steelmaker, could also help Nissan negotiate prices with Japanese steelmakers. High material prices have weighed on automakers' profits.


Updated : 2021-06-22 10:34 GMT+08:00