Integration of Steel Sheet Business Companies in Thailand
Feb. 10, 2016
Nippon Steel & Sumitomo Metal Corporation
The Siam United Steel (1995) Co., Ltd.
Nippon Steel & Sumikin Galvanizing (Thailand) Co., Ltd.
Integration of Steel Sheet Business Companies in Thailand
Two consolidated subsidiaries of Nippon Steel & Sumitomo Metal Corporation (NSSMC), namely The Siam United Steel (1995) Co., Ltd. (SUS), which manufactures and sells cold-rolled steel sheets, and Nippon Steel & Sumikin Galvanizing (Thailand) Co., Ltd. (NSGT), which manufactures and sells hot-dip galvanized steel sheets mainly for automobiles, have agreed on February 9, 2016 to integrate in September of this year.
The newly integrated company plans to be named as NS-Siam United Steel Co., Ltd. (NS-SUS).
1. Purpose of the Integration
SUS was established in 1995 as a joint-venture between Thai shareholders, including the Siam Cement Group, and Japanese shareholders. NSGT was established in 2011 as a subsidiary of the former Nippon Steel Corporation. Since the establishment of NSGT, both companies have taken advantage of their locations on the same premises and developed their steel sheet product businesses for Thailand and other ASEAN region.
The integration of these two companies will allow the realization of the best steel sheet mill with the leading capabilities for steel sheet products in Thai and ASEAN markets. The new company will be able to maximally demonstrate the superiority of only one cold rolling-galvanizing integrated mill in Thailand manufacturing steel sheet products of automotive use compatible. Moreover, the new company will further enhance competitiveness and capability to support our customers with quality, delivery and advanced technologies by integrating and utilizing the management resources, including the management know-how and local personnel cultivated in Thailand since 1995.
2. Schedule for the Integration
February 2016: SUS and NSGT sign the entire business transfer agreement.
September 1, 2016: NS-SUS inauguration*
*Subject to the necessary government approvals.
3. Outline of the New Company
| (1) Name | NS-Siam United Steel Co., Ltd. (NS-SUS) |
| (2) Location of headquarters | Headquarters: Map Ta Phut, Rayong Province Branch office: Bangna, Bangkok |
| (3) Business | Manufacture and sale of cold-rolled steel and hot-dip galvanized and galvannealed steel sheets |
| (4) Capital | 13 billion baht (approx. 43 billion yen) (assuming the exchange rates of JPY 120/$, THB 36.0/$.) |
| (5) Shareholders | Nippon Steel & Sumitomo Metal Corporation: 80.2%; Mitsui & Co., Ltd.: 6.2%; Metal One Corporation: 5.0%; Sumitomo Corporation: 3.5%; Nippon Steel & Sumikin Bussan Corporation: 0.3%; Thai Tinplate Mfg. Co. Ltd.: 4.8% |
| (6) Production capacity | Cold-rolled steel sheets: 1 million tons/year; hot-dip galvanized steel sheets: 360,000 tons/year |
| (7) Number of employees | Approximately 1,100 |
Reference: Outline of NSGT and SUS
| Business | Manufacture and sale of automotive hot-dip galvanized and galvannealed steel sheets. | Manufacture and sale of cold-rolled steel sheets |
| Established | 2011 | 1995 |
| Location | Headquarters: Map Ta Phut, Rayong Province Branch office: Bangna, Bangkok | Headquarters: Map Ta Phut, Rayong Province Branch office: Bangna, Bangkok |
| Representative | Akihiko Ota | Hiroaki Sato |
| Capital | THB 3.591 billion | THB 9 billion |
| Shareholders | Nippon Steel & Sumitomo Metal Corporation: 100% | Nippon Steel & Sumitomo Metal Corporation: 72.7%; Mitsui & Co., Ltd.: 8.6%; Metal One Corporation: 6.9%; Sumitomo Corporation: 4.8%; Nippon Steel & Sumikin Bussan Corporation: 0.4%; Thai Tinplate Mfg. Co. Ltd.: 6.7% |
| Total assets (as of the end of December 2014) | THB 10.786 billion | THB 13.141 billion |
| Number of employees (as of the end of December 2015) | 260 | 867 |
For inquiries
NSSMC Public Relations Center Tel.: +81-3-6867-2146,2135,2977,3419
