Sumitomo Metal Industries Ltd and Nippon Steel Corp. have announced that they have decided to integrate the arc-welded stainless steel pipe and tube businesses currently conducted by their respective group companies and a definitive agreement has been executed by and among Sumitomo Metals, Nippon Steel, Sumikin Stainless Steel Tube Co. Ltd, Nittai Corp. and Konan Co. Ltd. By integrating the operations of both groups, each having strong technological and sales capabilities, a leading, specialized company in the arc-welded stainless steel pipe and tube industry will be created. By leveraging the strengths of each party, efficient systems for production and sales will be established and high competitiveness will be achieved. Nippon Steel will establish a wholly-owned subsidiary to which the arc-welded stainless steel pipe and tube businesses of Nippon Steel, its subsidiary, Nittai and Nittai’s wholly-owned subsidiary, Konan will be transferred. Subsequently, Sumikin Stainless Steel Tube, which is wholly-owned by Sumitomo Metals, will merge the above newly-established company and complete the business integration. The present three production sites (Sumikin Stainless Steel Tube Koga plant in Koga City, Ibaraki Prefecture; Nittai in Noda City, Chiba Prefecture; Konan in Hikari City, Yamaguchi Prefecture) will be consolidated into two locations, Koga and Noda. Sumikin Stainless Steel Tube will continue to produce seamless stainless steel pipe in Shonan Plant (Fujisawa City, Kanagawa Prefecture) of the new integrated company. The integration is currently scheduled for 1 July 2009.
