Restructuring/Consolidating Tubular Coupling Machining Business
Apr. 08, 2016
Nippon Steel & Sumitomo Metal Corporation
Nippon Steel & Sumikin Fine Technology Co., Ltd.
Nippon Tubular Products Co., Ltd.
Restructuring/Consolidating Tubular Coupling Machining Business
Announcing a merger between Nippon Steel & Sumikin Fine Technology Co., Ltd. and
Nippon Tubular Products Co., Ltd.We are pleased to announce that Nippon Steel & Sumikin Fine Technology Co., Ltd. (“Nippon Steel Sumikin Fine Tech”) and Nippon Tubular Products Co., Ltd. (“Nippon Tubular Products”), each a 100% subsidiary of Nippon Steel & Sumitomo Metal Corporation, have agreed to merge as of July 1, 2016 to form Nippon Steel & Sumikin Precision Machining Co., Ltd. (hereinafter referred to as the “Merger”), whereupon Nippon Steel Sumikin Fine Tech shall be the surviving company. Today the two companies have signed a merger agreement.
1. Purpose of the Merger
Over many years both of the aforementioned companies have been contributing to the Nippon Steel & Sumitomo Metal group as a group company with high technological capabilities in charge of manufacturing/machining of couplings used in oil well tubular products. The two companies have also applied their precision machining technology related to tubular couplings to other fields. This wider application of their technology has been highly appreciated by a wide range of customers.
The oil well tubular business is currently experiencing a tough situation due to low oil prices worldwide. In such circumstances, by means of the Merger the two companies are seeking to amalgamate their respective precision machining technology and know-how that have been developed over the past years and thereby build an optimum system for the production of oil well tubular couplings and to realize high cost-competitiveness. The two companies also seek to be capable of meeting customers’ versatile needs in fields of machining other than well tubular products.
2. Outline of the Merger
(1) Merger date (Effective date of merger)
July 1, 2016
(2) Method of merger
A method whereby Nippon Steel Sumikin Fine Tech will be the surviving company and
Nippon Tubular Products, the non-surviving company.
(3) Overview of the merging parties
| Nippon Steel Sumikin Fine Tech | Nippon Tubular Products | |
| Representative | Hideki Hora, Representative Director & President | Masanori Nakamura, Representative Director & President |
| Location of Head Office | Kashiwara City, Osaka Prefecture | Nakatsu City, Oita Prefecture |
| Month and year of foundation | December, 1945 | July, 1982 |
| Main business | Machining of oil well tubular couplings; precision machining | Machining of oil well tubular couplings; precision machining |
| Sales (for the period ended March 2015) | 6,290 million yen | 1,879 million yen |
| Capital (as of April 1, 2016) | 500 million yen | 200 million yen |
| Number of employees (as of April 1, 2016) | 221 | 73 |
(4) Corporate name and address after merger (on July 1, 2016)
| Corporate name | Nippon Steel & Sumikin Precision Machining Co., Ltd. |
| Location (business base) | Kashiwara City, Osaka Prefecture (head office); Nakatsu City, Oita Prefecture |
For further details, please inquire at:
Nippon Steel & Sumitomo Metal Corp. Public Relations Center, General Administration Division.
Phone 03-6867-3419/2146/2977/2135
Nippon Steel & Sumikin Fine Technology Co., Ltd. Administration & Human Resources Group, Operations Department. Phone 072-972-1961
Nippon Tubular Products Co., Ltd. Administration Section, Operations Department.
Phone 0979-22-1010
