Nippon Steel, Sumitomo Metal Industries, Nippon Steel Engineering, Nippon Steel Pipeline, Sumitomo Metal Pipeline & Piping announced on Tuesday they agreed in merger of Nippon Steel Pipeline and Sumitomo Metal Pipeline & Piping in October. Nippon Steel & Sumikin Engineering, which will be renamed from Nippon Steel Engineering in October, controls 100% of the new company, Nippon Steel & Sumikin Pipeline & Engineering.Nippon Steel Engineering acquires 100% of Sumitomo Metal Pipeline & Piping, which is wholly owned subsidiary of Sumitomo Metals, through share exchange. Sumitomo Metal Pipeline & Piping acquires Nippon Steel Pipeline, which is wholly owned subsidiary of Nippon Steel Engineering. The new company with 2.8 billion yen of capital locates the headquarters in Tokyo. The new company’s recurring profit is 1.5 billion yen with 40.8 billion yen of sales based on results of the both companies for the year ended March 2012. The new company has around 50% share in engineering business of pipeline and related facility in Japan. The firm seeks synergy through the merger along with synergy through cooperation with Nippon Steel & Sumitomo Metals, which is created in October through merger of Nippon Steel and Sumitomo Metals.
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