Nippon Steel and Sumitomo Metal Corporation are the world's three largest steel producers. The company was founded in 1970 with the merger of the old Nippon Steel and Sumitom Metal companies. They now have more than a hundred thousand employees and operate in more than a dozen countries.
Nippon Steel & Sumitomo Metal Corporation
The Nippon Steel & Sumitomos Metal Corporation was formed by the merger of the old Nippon Steel Corporation and Sumitomo Metal Corporation. The old Nippon Steel Corporation was founded in 1970 after the merger of Fuji Iron & Steel and Yawata Iron & Steel. The combined company is now the world's third largest steel producer.
The Nippon Steel & Sumitomos Metal Corporation operates in a variety of industries including engineering and construction, chemicals and materials, and system solutions. The company manufactures steel, composites, and other metals. The company also produces carbon fibers, petrochemical products, and electricity.
The Japanese steel industry is in turmoil, with companies like Nippon Steel experiencing a 39 percent decline in profit in 1983. Higher raw material prices caused the slump. As a result, the company started looking for alternative business models to remain competitive. In 1986, it announced a loss, and began diversifying away from the "smokestack" industrial sector.
Nippon Steel and Sumitomo Metal Corporation have been in talks to merge their steel businesses. The merger is subject to approval from the Japan Fair Trade Commission. Ultimately, it would create a new company, NS BlueScope Coated Products, with Nippon Steel acquiring half of the stake in BlueScope's building products.
The Nippon Steel & Sumitomos Metal Corporation (NSSMC) is the world's largest integrated steel producer and produces value-added steel products for more than fifteen countries. The company currently operates 13 steelworks in Japan and three major research centres. The company also has six laboratories located at its steelworks.
ArcelorMittal
ArcelorMittal is a subsidiary and partner of Nippon Steel, the Japanese steelmaker. The two companies have announced a joint venture to develop the Indian steel market. The joint venture will be named ArcelorMittal Nippon Steel India. The two companies also announced joint plans to reduce steel production capacity. Nippon Steel said it plans to close two blast furnaces at its Kure Works in Japan within a few years. It also said it may shut down the entire plant in the future. This move was prompted by rising Chinese competition, Nippon Steel said in a statement.
Nippon Steel & Sumitomo Metal Corp was founded in 1950 and is headquartered in Tokyo, Japan. Its main products include flat products, structural steel, pipes and tubes, and steel plates. Its business also includes new materials development. It has production facilities in Asia, the Americas, and the Middle East, as well as in Japan.
ArcelorMittal has also partnered with NSSMC in acquiring ThyssenKrupp's steel mill in the United States. The acquisition was made through a 50:50 joint venture. It has a capacity of 5.3 million tonnes. Its operations include hot rolling and cold rolling.
In April, the companies signed a memorandum on strategic collaboration aiming to enhance the relationship between the two companies. The two companies also agreed to pursue carbon neutral steelmaking processes. The companies have also acquired a majority stake in G J Steel PCL.
India's Essar Steel
The merger of Japan's ArcelorMittal and India's Essar Steel will increase India's steel production capacity to more than 23 million tons by the 2030s. The expansion plan includes acquisitions and fresh investments. The combined companies Buy Metal Products produce 9.6 million tons of steel products per year.
The deal would boost Essar Steel's production capacity to between 8.5 million tonnes and 15 million tonnes per annum. The combined company would increase its output by integrating its steelmaking assets and enhancing its global reach. The deal would be beneficial for both companies and would also boost India's overall growth.
The merger has the blessing of India's National Company Law Tribunal. Nippon Steel and Sumitomo Metal Corp are listed on the Tokyo Stock Exchange and have large market caps. They have a long list of customers and are already one of the world's largest steel producers.
The joint venture between Japan's NSSMC and India's Essar Steel is expected to be completed by the end of 2019. The combined company will operate under the name ArcelorMittal Nippon Steel India. However, Nippon Steel and Sumitoma Metal Corp have also announced plans to reduce their steel capacity by 2020. In addition, Nippon Steel announced plans to shut down both blast furnaces at its Kure Works in India, and in time, the entire steelworks might shut down. This decision was largely prompted by rising Chinese competition.
While Essar Steel is in the middle of a restructuring process, the company has reached a deal with the Japanese company. The acquisition is expected to close before the end of 2018. Essar Steel will become a joint venture between ArcelorMittal and NSSMC, with the latter owning the majority of the company. The transaction will be funded by debt and partnership equity.
The deal will be financed through a $7 billion term facility agreement between the two companies. The Japanese company is expected to invest about 300 billion yen in the joint venture. Essar Steel India Limited's creditors have already approved the deal. The transaction is subject to approval by the European Commission and the National Company Law Tribunal.
In April 2022, Nippon Steel plans to merge two of its Thai subsidiaries. It will acquire Siam Tinplate and NS-Siam United Steel. The combined business will produce 1 million tonnes of cold rolled and 360,000 tonnes of hot-dip galvanized steel. The merger will also create a new subsidiary, NS BlueScope Coated Products, which will sell hot-dip galvanized sheets and other building products.
