A recent press release states that to achieve synergy of the stainless steel business of the NSSMC Group, Nippon Steel & Sumitomo Metal Corporation (NSSMC), Nisshin Steel Co., Ltd. (Nisshin Steel) and Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) concluded a basic agreement on May 16, 2018 to enable NSSC to succeed a part of the steel sheet business among NSSC special stainless steel business (steel sheets, shaped steel) and the steel sheet business among Nisshin Steel stainless steel business (steel sheets, steel pipes and tubes). Then on January 1, 2019, since Nisshin Steel became a wholly-owned subsidiary of NSSMC an integrated basic agreement has been concluded between the three companies April 1, 2019, as follows.
Since Nisshin Steel became a wholly-owned subsidiary of NSSMC in March 2017, NSSMC, Nisshin Steel and NSSC have been promoting cooperation and mutual understanding in the fields of manufacturing, sales, procurement, etc. of the stainless steel business. However, in order to deal with the harsh business environment such as significant oversupply in Asian markets and future changes in social and industrial structures, and to achieve development and growth, it has been concluded that there is an urgent need to maximize synergy by assembling the collective efforts of the stainless steel business of the NSSMC Group, sharing and expanding the strengths of the three companies, and reinforcing the weaknesses. NSSMC, Nisshin Steel and NSSC have now decided to integrate each stainless steel business on April 1, 2019 by gathering the management resources for the stainless steel business fostered by each company, integrating the corporate strategy, and through not only the promotion of efficiency of the organizational an
d operating structure, but the creation of customer values by providing on-target products, application processing technology and services, the promotion of world-leading technical development, the thorough pursuit of best practices and the building of an optimum production facility system, thereby constructing further synergy and promoting future growth and development.
Discussing the business integration method, the press release states that as of April 1, 2019 the three companies, NSSMC, Nisshin Steel and NSSC, will use the company split method to make NSSMC a split company and NSSC a succeeding company, and have NSSC succeed part of the special stainless steel sheet business (excluding pure nickel/nickel alloy and clad steel sheet business) of NSSMC special stainless steel businesses (steel sheets, shaped steel). They also use the company split method of making Nisshin Steel a split company and NSSC as a succeeding company, and have NSSC succeed the stainless steel sheet business (including steel sheet and steel plate business) of Nisshin Steel stainless steel businesses (steel sheets, steel pipes and tubes).
Finally, giving an overview of the integrated company, the press release indicates that the business of NIPPON STEEL Stainless Steel Corporation will be the manufacturing and sales of stainless steel sheet, plate, bar wire rod, billets, etc. The number of employees is put at 3,200, and the sales volume at some 1.5 million t/year.
