On October 1, 2012, Nippon Steel Corporation, the largest steel company in Japan, and Sumitomo Metal Industry Co., Ltd., the third largest steel company, officially merged to form Nippon Steel Sumitomo Metal Co., Ltd., with an annual production capacity of 50 million tons, and crude steel production accounting for about 40% of Japan's total crude steel production, becoming the world's second largest steel company after ArcelorMittal. This is the third wave of mergers in the Japan steel industry since Nippon Steel was established in 1970 and Kawasaki Steel merged with NKK in 2002 to form JFE.
On February 3, 2011, Nippon Steel and Sumitomo Metal announced for the first time the proposed $22.5 billion merger. The new company seeks to create synergies through the merger in terms of global business scale, new product and technology development, production and sales, and raw material procurement. The merger aims to integrate the operating resources of both companies, expand into rapidly developing
overseas emerging markets to advance its global strategy, and also enhance its voice in steelmaking raw material price negotiations with mining giants. The new company's future business strategy will focus on the following three aspects: first, to significantly reduce production costs and streamline production processes; the second is to increase the market share in overseas markets; The third is to maintain a competitive advantage in technology relative to competitors.
On the Basis of honest, trustworthy and win-win benefit business policy, our company has win high reputations in the market for our quality materials and competitive price.
