Nippon Steel Japan expands its operations to all parts of the world

Amid weak demand for metal in Japan's domestic market, the world's second largest steel producer, Nippon Steel & Sumitomo Metal, is looking for new markets for its growing production outside of Japan, gradually adding assets in foreign markets.

The company recently acquired a US steel mill from ThyssenKrupp AG through a joint venture with Arcelor Mittal. The deal is part of a strategy to meet the growing demand overseas. Company President Kozei Shindo said that the steel industry is gaining a global focus, so it is important to get assets in the external market, not in Japan.

At the same time, Nippon Steel & Sumitomo Metal Corporation announced plans to restructure three subsidiaries. This will merge the rail engineering activities of its subsidiary NSST with the NSKI rail equipment maintenance business. The new structure in the railroad sector of the company will better meet the growing market demand in order to provide long-term service and support services.

In the first quarter, the company's profit fell 24 percent as steel product prices were hit hard by steel imports from China. Nippon Steel's main market direction has become Brazil, which is the largest producer of steel products in Latin America. Sindo added that operations at Usinas Siderurgicas de Minas Gerais SA under Brazilthat Nippon were very important under the prevailing conditions. In addition, he added that the company was going to globalize its business around the world.