Japan’s Nippon Steel Corp. and Sumitomo Metal Industries Ltd have agreed to integrate their welding-materials operations by forming a new company next year. Under the agreement, the two firms will spin off their welding-materials operations from their respective group firms and integrate such operations in the new joint company, the two companies said. The Nippon Steel side will own more than 50% of the new firm, according to company sources. The new company will account for some 30% of Japan’s domestic welding-materials market, making it the second largest after Kobe Steel Ltd, which has a 40% market share. Nippon Steel Co. and Sumitomo Metal Industries already have business ties in stainless steel and building materials and are expected to strengthen such ties.
