The world's second biggest steelmaker Japan-based Nippon Steel & Sumitomo Metal Corp. (NSSMC) has announced that it has executed a merger agreement with its consolidated subsidiary Nippon Steel & Sumikin Koutetsu Wakayama Corporation (NSSKW) to implement a merger, in which NSSMC will be the surviving company and NSSKW will be the absorbed company, effective on April 1, 2018.
NSSKW, a consolidated subsidiary of NSSMC, is a company which undertakes the upstream operations (ironmaking and steelmaking operations) of NSSMC’s Wakayama Works, and supplies semi-finished products for seamless steel pipes which are mainstay products of NSSMC’s Wakayama Works and semi-finished products for NSSMC’s other steelworks.
According to the merger agreement, the business of NSSKW will be continued as the upstream operations of NSSMC’s Wakayama Works, and through the merger, NSSMC will strive to further enhance its management efficiency by utilizing own business infrastructure. By promoting measures to enhance competitiveness, including the merger, NSSMC is determined to further improve its strengths like technological superiority, cost-competitiveness and worldwide capabilities and ensure its position as the “Best Steelmaker with World-Leading Capabilities”, thereby aiming to achieve sustainable growth and enhance its corporate value.