Japanese steelmaker Nippon Steel Corporation (NSC) has announced that it will merge with its wholly-owned subsidiary Nippon Steel Nisshin Co. Ltd. (NSN). The merger will be effective as of April 1, 2020. NSC will be the surviving company, while NSN will be the absorbed company.
Commenting on the reasons for the merger, Nippon Steel stated, “In the current fiscal year, the environment surrounding the steelmaking industry is rapidly deteriorating. In addition to a significant deterioration in NSC’s own business conditions, NSN is likewise experiencing very harsh business conditions. Furthermore, in the context of a series of accidents and emergencies that have occurred at NSN since last year, an even greater level of integrated operations with NSC is becoming necessary from the perspectives of maintaining customer relationships and securing stable supply of products. Taking these circumstances into account, after consideration by both companies, the decision has been made to merge, forming an organizational structure for agile response aimed at strengthening competitiveness.”