The new 50:50 joint venture, called NS BlueScope Coated Products, hopes to tap growth in the $40 billion per annum building and construction sector in Southeast Asia and North America.

The JV is expected to facilitate and speed up entry into new markets not currently accessible to BlueScope.

BlueScope will receive approximately US$540 million in net proceeds through NSC’s 50% acquisition of BlueScope’s interest in the businesses after allowing for taxes, minority interests and transaction costs.

BlueScope chairman Graham Kraehe has welcomed the deal.

“It clearly highlights the long-term strategic value created by BlueScope over many years,” he said.

“It will enhance BlueScope’s growth and opens an exciting new era for the company.”

The joint venture will comprise BlueScope’s current building products businesses in ASEAN (Indonesia, Malaysia, Thailand, Vietnam, Singapore and Brunei) and North America (Steelscape and ASC Profiles).

The JV will not include BlueScope’s building products businesses in Australia, China and India, or its Global Building Solutions business that operates across the world (including in ASEAN countries).

This article first appeared in ILN's sister publication ConstructionIndustryNews.net