Sumitomo Metals to Acquire Fuji Shaft

Sumitomo Metal Industries’ special steel bar and wire rod producing subsidiary, Sumitomo Metals (Kokura) announced on Friday the firm acquires controlling share of Japanese cold heading wire and cold finished steel bar maker, Fuji Shaft from its shareholders including major cold finished steel bar maker, Ogiso Kogyo. Sumitomo Metals (Kokura)’s subsidiary, Sumikin Steel Processing merges Fuji Shaft on February 1, 2011. After the merger, Sumikin Steel Processing with plants in Osaka and Fukuoka adds Fuji Shaft’s plant in Shizuoka to cover wider range of domestic market. Sumitomo Metals group strengthens the quality and delivery while Sumitomo Metals (Kokura) completed modernization of steelmaking in October.

Sumitomo Metals (Kokura) will increase shareholding in Fuji Shaft from current 13% to 83% through the transaction in early December. Both Sumikin Steel Processing and Fuji shaft make cold heading wire for automobile structural component. The Sumitomo Metals group enhances the competitiveness by the merger. Sumitomo Metals (Kokura) utilizes better steel quality from the new steel making process to improve the purity and workability of wire rod for cold heading.