# Novelis forms joint venture with Kobe Steel for Ulsan facility

Novelis Inc. entered into a joint venture agreement with Kobe Steel, Ltd., selling 50% ownership in its Ulsan, South Korea facility for $315 million. The joint venture, Ulsan Aluminum, Ltd., will jointly own and operate the facility.

- Type: Acquisition
- Announced: 2017-05-09
- Where: Ulsan, South Korea, South Korea
- Value: $315.0M
- Status: announced
- Capacity: 300,000 tons per year
- Products: rolled aluminum sheet, automotive and specialty sheet
- Sectors: [Steel and Metal Products](https://endata.com/sectors/steel-metal-products.md)

## Companies

- [Novelis](https://endata.com/companies/2475.md)
- [Novelis](https://endata.com/companies/2475.md) (partner)
- [Kobe Steel](https://endata.com/companies/6583.md) (acquirer)
- [Kobe Steel](https://endata.com/companies/6583.md) (partner)
- [Novelis Korea](https://endata.com/companies/24166.md) (partner)
- [Novelis Korea](https://endata.com/companies/24166.md) (target)
- [Ulsan Aluminum](https://endata.com/companies/24179.md) (partner)

## Sources

- [investors.novelis.com](https://investors.novelis.com/news-events/press-releases/detail/159/novelis-enters-joint-venture-with-kobe-steel-in-south-korea), 2017-05-09: "By entering into this joint venture, we are able to leverage our deep experience with other successful joint ventures to more efficiently serve our customers and increase our strategic flexibility."
- [kobelco.co.jp](https://www.kobelco.co.jp/english/releases/1196942_15581.html), 2017-05-10: "Kobe Steel plans to acquire 50 percent of the Ulsan Plant of Novelis Korea, for US$315 million (about 35 billion yen)."
- [prnewswire.com](https://www.prnewswire.com/news-releases/novelis-enters-joint-venture-with-kobe-steel-in-south-korea-300454788.html), 2017-05-10: "By entering into this joint venture, we are able to leverage our deep experience with other successful joint ventures to more efficiently serve our customers and increase our strategic flexibility in order to capitalize on potential future market opportunities."
- [business-standard.com](https://www.business-standard.com/article/companies/novelis-sells-50-stakes-of-ulsan-facility-to-japan-s-kobe-steel-at-315-mn-117051001007_1.html), 2017-05-10: "By entering into this joint venture, we are able to leverage our deep experience with other successful joint ventures to serve our customers more efficiently."
- [thehindu.com](https://www.thehindu.com/business/Industry/novelis-sells-50-stake-in-ulsan-unit-to-kobe-steel/article18420610.ece), 2017-05-10: "By entering into this joint venture, Novelis will better utilise its rolling capacity at Ulsan, which will continue to focus on automotive and speciality sheets in order to meet the increasing demand for lightweight rolled aluminum products across Asia."
- [lightmetalage.com](https://www.lightmetalage.com/news/industry-news/flat-rolled-sheet/novelis-and-kobe-steel-form-joint-venture-partnership/), 2017-05-10: "In Japan, demand for can stock, one of Kobe Steel's core products, is expected to remain firm."
- [scrapmonster.com](https://www.scrapmonster.com/news/novelis-announce-strategic-joint-venture-deal-with-kobe-steel/1/65040), 2017-05-11: "The joint venture deal named Ulsan Aluminum, Ltd. is expected to close in September this year."
- [gotsu.co.jp](https://www.gotsu.co.jp/gotsu-news/entry/76115.html), 2017-06-05: "神戸製鋼所は、Novelisの100％子会社であるNovelis Koreaと、アルミ板圧延品を製造する合弁会社を設立することに合意した。"

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Data from Endata (https://endata.com/). Announcements are summarized from public sources and may be incomplete; check the linked originals.