The Japanese steel company Nippon Steel Corporation announced plans to merge its subsidiaries by Nippon Steel Kokan Co., Ltd., Tsurumi Kokan Co., Ltd. and Nippon Steel Kokan Finetube Co., Ltd. In a single company.
the merger agreement will be submitted for approval at the meeting of the shareholders of each company, and integration should enter into force on January 1, 2026. The new enterprise will work under the name Nippon Steel Finetube Co., Ltd.
Responing to structural changes in the market
Three subsidiaries already For a long time they supply a wide range of steel pipes to customers in the sectors of automobile, construction and industrial equipment. However, at present, they are faced with more and more difficult market conditions:- Long-term stagnation of internal demand for steel exerts pressure on the margin. operation.
- The shift towards the electrification of the vehicle changes the structure of demand in the sector of the mechanical pipes. nippon steeel said that the merger is designed to solve these structural problems and the positioning of the group for sustainable growth in a rapidly developing market.
Focus on the effectiveness and responsiveness of customers
Integration is aimed at increasing the efficiency management, optimization of production at each production site and strengthening the corporate structure.
as part of the Nippon Steel Group, the new company will be
