San-Etsu Metals to Control Majority of CK Metals

Toyama based major brass bar maker, San-Etsu Metals announced on Monday the firm controls majority of Toyama based metal piping products maker, CK Metals, which has 25.58% share of San-Etsu Metals. San-Etsu Metals acquires 1.68 million share or 47.54% of CK Metals for 907 million yen on April 1. San-Etsu Metals eyes holding company structure to control business units including San-Etsu Metals and CK Metals.

San-Etsu Metals increases the interest in CK Metals from current 131,000 share or 3.7% to 51.24%. San-Etsu Metals controls CK Metals as consolidated subsidiary from new fiscal year starting in April 2011. San-Etsu Metals has no intention to get additional share of CK Metals.

They have developed cooperation in joint procurement and human resource exchange as CK San-Etsu group. They consolidate the administration through the transaction to improve the management of the group.

CK Metals makes piping products and provides plating process service. The firm posted 19 million yen of recurring profit with 3.427 billion yen of sales for the year ended June 2010.

San-Etsu Metals tries to keep stable supply of brass bar products after the major earth quake. The firm introduced emergency power generator at plant in Ibaraki under controlled blackout program in the area. The firm prepares for potential billet supply from 2 plants in Toyama to keep the stable brass bar supply.