Nippon Steel to Merge Cold Heading Wire Making Subsidiaries

Nippon Steel announced on Thursday the cold finished bar and wire making subsidiary, Matsubishi Metal Industry merges with New Sankoseisen, which is Nippon Steel’s subsidiary to make cold heading wire, in April. Nippon Steel tries to improve the competitiveness of the business to follow growing automobile demand.

New Sankoseisen, which makes thinner cold heading wire, was established in 2003 by Nippon Steel and Metal One Corporation. Matsubishi Metal Industry, which makes large diameter cold heading wire and cold finishing steel bar, purchased New Sankoseisen’s share for technical tie-up in 2005. The president sent by Nippon Steel manages the 2 companies. Nippon Steel controls 50.8% of the combined company with 28.5% share by Metal One.

Matsubishi Metal Industry has monthly 5,000 tonnes of cold heading wire making capacity and 6,000 tonnes of cold finished bar making capacity while New Sankoseisen has 5,000 tonnes of capacity. The combined company tries to improve the competitiveness in quality, productivity and products development ability to follow automobile demand.