Nippon Steel’s president Shoji Muneoka said to a reporter of Japan Metal Bulletin the firm tries to improve competitiveness of steel business and to globalize the business to follow growing world steel demand and to seek growth. He said the firm accelerates the effort after merger with Sumitomo Metal Industries to become best steel maker with world leading capabilities. The firm keeps talking with Sumitomo Metals for better way based on best for the new company spirit.
Mr. Muneoka said the combined firm streamlines the production base especially for rolling mills. He expects the better cost competitiveness through shorter delivery distance while Sumitomo Metals ships steels from Kashima works to Kyushu area and Nippon Steel delivers steels from Yawata to Kanto area. Mr. Muneoka said the combined company can utilize better resource from the research and development units. He said Nippon Steel and Sumitomo Metals already started cooperation between the units. He expects when Nippon Steel is world largest patent holder in steel industry, with Sumitomo Metals’ patent, the combined company has much larger technology base. He expects the merger company can accelerate the technology development in products, process and raw material utilization through the synergy. Mr. Muneoka said the combined company can utilize human resource, assets and capital more efficiently for globalization. He expects the new company can cover wider areas with more efficient and speedy way than the individual companies. Mr. Muneoka said the new company should be supplier of high grade and top end steel products while the firm also has cost competitiveness in middle grade products. He said the firm resets the domestic facilities into efficient production base while the firm focuses the investment in globalization. He said the firm can reach level of world best cost competitiveness through technology innovation especially in iron making process.