Toyama based major brass bar maker, SAN-ETSU METAL announced on Tuesday the firm acquires all business of Tokyo based brass bar maker, SHIN-NITTO, which is wholly owned subsidiary of Sumitomo Light Metal Industries, on October 1. SAN-ETSU will pay cash for the business, which values around 3.5 billion yen. SAN-ETSU expands the domestic production share of brass bar to 33% from current 21%.Sumitomo Light Metal accepts the gap between fair value and book value of the business. SAN-ETSU hires employees of SHIN-NITTO’s headquarters and plant in Ibaraki. SHIN-NITTO will dissolve itself in March 2008 after arrangement of debts and credits. President Hiroyuki Tsuriya of SAN-ETSU said brass bar makers should have monthly 10,000 tonnes of output to compete international market. He said the firm had negotiated for the acquisition since 2 years ago. Mr. Tsuriya said the merger results in scale merit for combined 8,000 tonnes per month of output including brass wire, better productivity through shearing production lines and stable supply with multi operations in northern Japan and Tokyo area.
Japan Steel Scrap Composite Prices (Sangyo Press)04/03/2020
|19500YEN (-)||21700YEN (-)|
|178.72US$ (-1)||198.88US$ (-1.12)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)