Nippon Steel and Sumitomo Metal gets rid of unnecessary assets

In October last year, Nippon Steel united with a smaller partner of Sumitomo Metal Industries after they have incurred losses from strong yen and competition from fast -growing and cheaper Asian competitors such as Posco for several years.

Nippon Steel and Sumitomo Metal Corp reported that they are on the way to achieving the goal: to get rid of unwanted assets in the amount of 3.05 billion dollars in the current financial year, which is 18 months earlier than the planned deadline. Despite the gloomy situation in the Asian market, the company optimism met Japan's program "Abenomics", which arose as a result of awarding Tokyo of the olympic Games 2020.

Japanese Prime Minister Shinzo Abe believes this event is a good incentive in order to rectify the situation in the country with the third largest economy in the world. Soft monetary policy and budget expenditures significantly help improve the business environment. The olympic Games in Tokyo revived prospects for the development of demand for construction and increased the business trust index. In this regard, demand has grown on Reducer 1C2U 200 and other equipment.

In the three-year business plan, Nippon Steel outlined a reduction in annual costs by $ 2.04 billion, as a fusion synergy. For 2015/16, the increase in profits before tax should be 5 to 10 percent, and in 2012/13 there are only 1.8 percent. The company plans to achieve the set goals ahead of schedule. The initial goal is to reduce assets by 300 billion. The yen was scheduled for mid -2015/16, three years after the merger. But the total reduction in assets already amounted to 220 billion. IEN by the end of September.