Japan-based steelmaker Nippon Steel has announced that, together with its subsidiary Sanyo Special Steel, it plans a major production consolidation for the Osaka Area of its Kansai Works. The goal is to transfer steel-product and free-forged-product manufacturing lines from Nippon Steel to Sanyo Special Steel.
Consolidation details
- Scope: steel ingots and free-forged products at Osaka Area of Kansai Works.
- Equipment transfer: special-melting equipment, horizontal press, and other free-forging equipment being moved to Sanyo Special Steel.
- Equipment suspension: units to be suspended include the electric arc furnace through the ingot-casting line and the vertical free-forging press at Osaka Area.
- Timing: consolidation to be completed by the first half of the financial year 2029-30; equipment suspension to finish by the third quarter of the financial year 2027-28.
Strategic rationale
Nippon Steel emphasized that the steel industry environment is becoming increasingly complex globally. Since Sanyo Special Steel became a wholly-owned subsidiary on April 25, 2025, the group has pursued a more agile production-system restructuring. The consolidation aims to enhance cost competitiveness in the Osaka area, strengthen the group’s manufacturing capabilities and global strategy, improve procurement of raw materials such as scrap, and expand sales and technological cooperation.