Japanese steel company Nippon Steel has announced that, together with its subsidiary Sanyo Special Steel, it is planning a major consolidation of production in the Osaka area at its plant in Kansai. The goal is to transfer the steel and forged production lines from Nippon Steel to Sanyo Special Steel.
Consolidation details
- Scope of application: steel ingots and free-forged products in the Osaka area of the Kansai plant.
- Equipment transfer: special melting equipment, horizontal press and other forging equipment moved to Sanyo Special Steel.
- Suspension of equipment: The units to be suspended include an electric arc furnace through an ingot casting line and a vertical forging press in the Osaka area.
- Timeline: Consolidation should be completed by the first half of fiscal year 2029-30; equipment suspension should be completed by the third quarter of fiscal year 2027-28.
Strategic rationale
Nippon Steel emphasized that the environment of the steel industry is becoming increasingly complex worldwide. Since Sanyo Special Steel became a wholly owned subsidiary on April 25, 2025, the group has been implementing a more flexible restructuring of the production system. The consolidation aims to increase cost competitiveness in the Osaka area, strengthen the group's production capabilities and global strategy, improve procurement of raw materials such as scrap, and expand sales and technological cooperation.
