Basic Agreement concerning the Merger between Nittetsu Shinko Shearing and Shearing Kozyo
Jan. 18, 2013
Nippon Steel & Sumitomo Metal Corporation
Nittetsu Shinko Shearing Corporation
Shearing Kozyo, Ltd.
Basic Agreement concerning the Merger
between Nittetsu Shinko Shearing and Shearing Kozyo
NIPPON STEEL & SUMITOMO METAL CORPORATION and its consolidated subsidiaries, Nittetsu Shinko Shearing Corporation (president: Hiroyuki Asano) and Shearing Kozyo, Ltd. (president: Akihiko Nagayoshi), have been studying among them the business integration of the two subsidiaries and have now reached the basic agreement.
The plate autogenous cutting business, which constitutes the central pillar of these two companies’ business, has been severely impacted by sharp declines in such demand areas as steel-frame structures and bridges resulting from cuts in public expenditure and slackening in private capital spending. In the areas of construction and industrial machineries also, given a persistently slow business the world over and the progress of industrial hollowing, with little prospect for a major upturn, the situation is as bad as it can be.
In these circumstances, it is urgently needed to take action to structure an optimum production and operation structure in an effort to realize tough cost competitiveness. For this rationale, basic agreement has been reach for the merger of the two subsidiaries having neighboring production bases. In the aspect of quality, delivery and other customer services also, the two companies joining resources will be working toward further improvement, complementing each other’s steel-fabrication technology and know-how.
The three-party study team will promptly be organized so as to realize the merger at the soonest possible date (target: April 1) in the first half of fiscal 2013. It will study the name of the new company, capital formation, and many other matters associated with the merger, from all angles, so that better services can be provided to customers.
It may be added that the heat treating business now conducted by Shearing Kozyo will be succeeded to by the merged company.
Outline of Nittetsu Shinko Shearing:
-Establishment: 2003 (Founded: 1914)
-Location: 6-37, Tsuneyoshi 2-chome, Konohana-ku, Osaka City, Osaka Prefecture
-Capital: 231 million yen
-Representative Director and President: Hiroyuki Asano
-Shareholder formation: Nippon Steel & Sumitomo Metal 40%, Kobe Steel, Ltd. 20%, Marubeni-
Itochu Steel Inc. 15%, and others.
-Business: Autogenous cutting of plate
-Productive capacity: 4,000t/month
-Sales: approx. 4,000 million yen (projected for the March 2013 term)
-Employees: 66 (as of the end of December 2012)
Outline of Shearing Kozyo:
-Establishment: April 1909 (as Japan’s oldest shearing shop)
-Location: 36-1, Chikkoshinmachi 3-cho, Nishi-ku, Sakai City, Osaka Prefecture
-Capital: 477 million yen
-Representative Director and President: Akihiko Nagayoshi
-Shareholder formation: Nippon Steel & Sumitomo Metal 73.5%, Sumitomo Corp. 12.6%,
Sumikin Bussan Corp. 12.6%, and others.
-Business: Autogenous cutting of plate and heat treating
-Productive capacity (autogenous cutting of plate): 2,500t/month
-Sales: approx. 3000 million yen(of which autogenous cutting of plate represents approx. 2000
million yen, as projected for the March 2013 term)
-Employees: 88 (as of the end of December 2012)
Nippon Steel & Sumitomo Metal:
Public Relations Center, General Administration Div.
Tel: +81-3-6867-2135, -2976
Nittetsu Shinko Shearing:
General Administration & Planning Div. Tel: +81-6-6462-1461
Business Div. Tel: +81-72-244-3361