Nippon Steel to Add Major Flat Bar Maker into Group

Nippon Steel announced on Wednesday the firm purchases 35.6% additional share of Tokyo based flat bar maker, Oji Steel to increase the interest to 42.8% making the flat bar maker equity method affiliate. Nippon Steel increases control for major domestic electric furnaces including Godo Steel, Osaka Steel and Sanyo Special Steel. Nippon Steel seeks synergy through cooperation between companies in the expanded group to maximize the profit of the group.Nippon Steel purchases 35.6% of Oji Steel’s share held by Daido Steel in November after the talk for the value. Nippon Steel said the firm has no intention to purchase additional share of Oji Steel and to send management to Oji Steel. Oji Steel improves the competitiveness by utilizing business infrastructure of Nippon Steel group. Oji Steel, which has 1 million share of Nippon Steel, said the firm has no intention to get additional share of Nippon Steel. Oji Steel, which has 25% share in Japanese flat bar market, produces 380,000 tonnes of products at Gunma plant, which has electric furnace steel making shop and 2 rolling mills. The top flat bar maker posted 4.4 billion yen of recurring profit and 2.6 billion yen of profit after tax with 27.7 billion yen of sales for the year to March 2007.