Japan Steel Traders Accelerate Coil Center Integration beyond Groups

Japanese steel trading companies, such as Metal One, Marubeni-Itochu Steel, Nippon Steel Trading and JFE Shoji Trade Corporation, are accelerating integration and reorganization of their coil centers in Japan and at overseas beyond corporate groups. The trading houses had opened new coil centers in Japan and at overseas to follow strong demand growth before global economy collapse. The companies now optimize their business networks in response to drastic market change as well as refrain from excessive competition.

Marubeni-Itochu Steel and Metal One integrated their coil centers in Philippine and established a new company, MM-High Precision Steel, in order to adjust the business size along the current market and improve the operating efficiency. Marubeni-Itochu Steel holds 60% equity and Metal One 40% in MM-High Precision Steel.

Metal One, Nippon Steel Trading and Nippon Steel Corporation plan to integrate their investing coil centers in Shanghai and Suzhou within 1-2 years. The newly integrated company aims high competitiveness in East China area with Nippon Steel’s high grade steel sheet. Metal One will take 55% equity in the new company with 40% equity of Nippon Steel Trading and 10% equity of Nippon Steel Corporation.

As a preparation for the integration, they unified capital ratio in existent 2 coil centers at 55% for Metal One, 40% for Nippon Steel Trading and 5% for Nippon Steel Corporation.

In Japan, Metal One and JFE Shoji Trade Corp. integrated their tin plate business subsidiaries and established a new company named MOBY. Nippon Steel Trading and Mitsui & Co. Steel integrated management of their H-beam inventories in Urayasu City, Chiba, Japan.