Japan’s fourth largest steelmaker Kobe Steel Ltd said it is keen to combine its aluminum and copper operations with other Japanese suppliers of the metals to reduce costs and negotiate better product prices.

Profit from Kobe Steel’s aluminum and copper business will probably slide 32% to JPY 10 billion (USD 130 million) in the year ending March 31, the company said October 31. The division accounts for about 16% of total sales, while steel makes up 45%

Domestic metal producers may enter into mergers or alliances after Nippon Steel Corp obtained approval from the Japan Fair Trade Commission last month to take over Sumitomo Metal Industries Ltd.

Japanese companies must seriously consider taking measures, including merging their operations, to compete globally as a stronger yen cuts into sales, Nippon Steel Chairman Akio Mimura said December 15.

(Sourced from Bloomberg)