Japan's Nippon Steel to exit JV with China's Baoshan
Japan's Nippon Steel says it will withdraw from a joint venture with China's Baoshan Iron & Steel as it seeks opportunities in other markets.
The venture was formed 20 years ago to manufacture and sell steel products to automakers as China's economy took off.
The two companies reached an agreement on Tuesday to end the partnership when the current contract expires on August 29.
Nippon Steel will sell its stake in the venture to Baoshan for an estimated 36 billion yen or 230 million dollars.
Japanese automakers are key customers of the joint venture and they are seeing sales fall in China as local electric vehicle makers take larger shares of the market.
Nippon Steel is shifting its business focus to the US, India and Southeast Asia. It is in the process of acquiring US Steel.
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