Partial transfer of Nihon Teppan shares to NSSB
09 October 2018
Nippon Steel & Sumitomo Metal Corporation (NSSMC), Nisshin Steel Co., Ltd. (Nisshin Steel), Nippon Steel & Sumikin Bussan Corporation (NSSB), and Nihon Teppan Corporation (Nihon Teppan) have decided to transfer a portion of Nihon Teppan’s shares, held by NSSMC and Nisshin Steel, to NSSB and have NSSB make Nihon Teppan its subsidiary. This will be done with the aim of maximizing the NSSMC Group’s synergy by improving the ability to respond to customers and the market by strengthening supply chains and unifying affiliated trading companies in the field of structural flat products.
Ever since Nisshin Steel became a subsidiary of NSSMC back in March 2017, NSSMC and Nisshin Steel have worked to maximize their synergy with one another by mutually leveraging their management resources and collaborating in various fields such as production, sales, and procurement in a wide variety of businesses. However, the environment surrounding the steel business is expected to change in the future. This includes changes to steel supply and demand structures, as well as changes to social and industrial structures.
In the midst of these circumstances, NSSMC and Nisshin Steel have decided to conduct this transfer of shares after judging that the unification of affiliated trading companies will help maximize synergy within the NSSMC Group. Nihon Teppan will become a subsidiary of NSSB, which is a primary trading company. Furthermore, in conjunction with this transfer of shares and this subsidiary acquisition, the commercial rights that have been handled by Nihon Teppan Stainless Marketing Division until now, will be transferred and consolidated to Nisshin Stainless Steel Trading Co., Ltd.