Japanese steelmaker Nippon Steel has announced that it will submit an offer of about JPY 70.5 billion ($455.06 million) to fully acquire domestic specialty steel producer Sanyo Special Steel and to make the latter its wholly owned subsidiary.
The company stated that domestic specialty steel demand is forecast to decrease in Japan due to China’s excess capacity and high exports and that, given an expected increase in demand in markets such as North America and India in the future, it is important to capture global demand in this field.
As a result, Nippon Steel plans to strengthen its competitiveness, overcome competition in severe market conditions and respond to market changes by integrating Sanyo Special Steel into its business.