Nippon Steel and Sumitomo Metal to merge

Nippon Steel Corporation and Sumitomo Metal Industries Ltd jointly announced that they have agreed to integrate their businesses on October 1st 2012.

They have entered into a Master Integration Agreement, after due discussion by the Integration Study Committee co chaired by the Presidents of both Companies, with the spirit of their relationship being based on equality, conducted since the companies agreed to commence consideration of the Business Integration in February 2011.

Outline of the business integration
An outline of the Business Integration, the name of the integrated company to be established by the Business Integration and the management goals of the Integrated Company and other information are provided below.

The Business Integration is subject to, inter alia, the approval of the relevant authorities and shareholder approval at the respective shareholders meetings of the companies.

Seeking synergies
The companies will, through the Business Integration, make a thorough effort to seek synergies by combining their respective advanced resources that each has built up, and by consolidating the superior areas of their respective businesses. In addition, the companies will accelerate the implementation of business structure reform by such means as pursuing greater efficiency in domestic production bases and expanding overseas businesses.

Aim: to be "the Best Steelmaker"
Through realisation of these objectives at an early stage, the Companies aim to be “the Best Steelmaker with World-Leading Capabilities” by boosting competitiveness in all areas including scale, cost, technology and customer service.

Through maximisation of the potential of steel as a fundamental industrial material by utilising world leading technology and manufacturing know how, the companies desire to support the development of customers in and outside Japan, as well as contribute to further growth of the Japanese and global economies and the improvement of global society.