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JFE Holdings, Japan's largest investment company, aims to invest nearly $3 billion overseas in growth.

JFE Holdings (parent of Japan's second largest steel manufacturer) has set aside 400 billion Japanese yen ($2.8billion) to invest overseas over a three-year period. It expects the domestic demand to remain weak, and that China's exports will continue to pressure global markets.

The company stated that its key strengths outside Japan include its partnerships with JSW Steel Limited India and Nucor Corporation North America. It also plans to increase its exposure overseas through strategic local partners.

It added that "in parallel with considering large scale overseas investments, such as the acquisition of raw materials interests, promising opportunities will be pursued through local partnerships in growing markets to capture increasing steel demand abroad."

JFE aims to increase its consolidated profit by 700 billion yen in fiscal 2035 from 135.3 billion last year. It expects that the steel business will remain challenging due to the declining demand in Japan, the increasing exports from China, and the uncertainty for the global economic situation resulting from U.S. Tariffs.

JFE Holdings reported a net loss of 54% for the year ending March 31. This was below LSEG's forecast of 105.4 Billion Yen. The company also posted lower steel production due to weaker domestic and international demand.

The company projected a profit for fiscal year of 75 billion yen. JFE stated that in addition to the low demand at home and U.S. Tariff measures, which are a major risk to its exports to North America, there is also a "significant risk" from the auto and construction machine sectors.

(source: Reuters)