Sumikin Kokura Makes Fuji Shaft Become Its Subsidiary and Merge with Sumikin Steel Processing
－Nationwide development of manufacturing facilities for steel wire for cold heading－
2010.11.26
- Sumitomo Metal Industries, Ltd.
- Sumitomo Metals (Kokura), Ltd.
Sumitomo Metals (Kokura), Ltd. (Sumikin Kokura) is the Sumitomo Metals Group’s manufacturer of specialty steel bars and wire rods, and today agreed to acquire shares of Fuji Shaft Co., Ltd.(Fuji Shaft) from Ogiso Kogyo Co., Ltd. and other shareholders. With this acquisition, Fuji Shaft will become a subsidiary of Sumikin Kokura. Subsequently, on February 1, 2011, Fuji Shaft is scheduled to merge with Sumikin Steel Processing Co., Ltd. (Sumikin Seiko), another subsidiary of Sumikin Kokura, with Sumikin Seiko becoming the surviving company.
This merger will enable the new Sumikin Seiko to operate nationwide as the specialty steel secondary processing manufacturer. Together with the new innovative steelmaking investment completed in October 2010 at Sumikin Kokura, the Sumitomo Metals Group will enhance its capability to meet customers’ needs in terms of quality and delivery time.
1. Background and objectives
Both Sumikin Seiko and Fuji Shaft are secondary processing manufacturers of specialty steel. They manufacture wires for cold heading (CHQ*2 wires), materials used mainly in structural components for automobiles. It is indispensable for such manufacturer to be located close to customers, in order to satisfy their needs for short delivery of products by the hour. By adding Fuji Shaft’s manufacturing base in Shizuoka to Sumikin Seiko’s existing bases in Osaka and Fukuoka, this merger will enable us to respond to the short-term delivery needs of our customers, who are located nationwide.
Wire rods for cold heading (CHQ wire rods), materials for CHQ wires, are required to have high quality in terms of high cleanliness, workability, and guarantees regarding cracks. Sumikin Kokura will effectively utilize its investment in the new innovative steelmaking processes completed in October 2010 and thereby respond to customers’ quality requirements. The new Sumikin Seiko will enhance the competency in CHQ wires in cooperation with Sumikin Kokura.
2. Schedule (plan)
| Early December 2010: | General shareholders’ meeting at Sumikin Seiko and Fuji Shaft (for approval of merger agreement) |
|
| February 1, 2011: | Merger (effective date) |
| *1）Please refer to Sumitomo Metals’ press release entitled: | ||
| “Sumitomo Metals Completes Investments in Innovative Steelmaking Process” (October 22, 2010), on the company’s website. | ||
| *2）CHQ = Cold Heading Quality | ||
＜Reference＞ Outline of the companies
1. Sumitomo Metals (Kokura), Ltd.
(1) |
Main business activities: | Manufacture and sale of specialty steel bars and wire rods | ||
(2) |
Head office location: | 1 Konomi-machi, Kokura-kita-ku, Kitakyushu, Fukuoka Prefecture | ||
(3) |
President and Representative Director: |
Yoshimitsu Kato | ||
(4) |
Manufacturing facility: | Kitakyushu, Fukuoka Prefecture | ||
(5) |
Capital: | 27,000 million yen | ||
(6) |
Major shareholder and its equity holding ratio: |
Sumitomo Metal Industries, Ltd. (100%) | ||
(7) |
Number of employees: | 1,192 (as of March 31, 2010) |
2. Fuji Shaft Co. Ltd.
(1) |
Main business activities: | Manufacture and sale of wires for cold heading and cold finished steel bars | ||
(2) |
Head office location: | 1100 Otsuka, Numazu, Shizuoka Prefecture | ||
(3) |
President and Representative Director: |
Makoto Ogiso | ||
(4) |
Manufacturing facility: | Numazu, Shizuoka Prefecture | ||
(5) |
Capital: | 150 million yen | ||
(6) |
Major shareholder and its equity holding ratio: |
Ogiso Kogyo Co. Ltd. (68.4%) | ||
(7) |
Number of employees: | 50 (as of September 20, 2010) |
3. Sumikin Steel Processing Co. Ltd.
(1) |
Main business activities: | Manufacture and sale of wires for cold heading, cold finished steel bars, bead wires, and wire products | ||
(2) |
Head office location: | 1 DejimaNishimachi, Sakai-ku, Sakai, Osaka Prefecture | ||
(3) |
President and Representative Director: |
Kazunari Kimura | ||
(4) |
Manufacturing facility: | Sakai, Osaka Prefecture, and Kitakyushu and Kurume, Fukuoka Prefecture | ||
(5) |
Capital: | 360 million yen | ||
(6) |
Major shareholder and its equity holding ratio: |
Sumitomo Metal (Kokura), Ltd. (71.4%) | ||
(7) |
Number of employees: | 232 (as of March 31, 2010) |
Products for cold heading, made of CHQ wires
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