Nippon Steel Corporation has announced plans to transfer its waste plastic recycling business to its wholly-owned subsidiary, NRC. The move aims to bolster their operational capacity in waste plastic processing and align with their Carbon Neutral Vision for 2050. The change is set to be effective from December 1, 2023.
Nippon Steel Corporation (NSC) has recently made a significant decision concerning its waste plastic recycling business. The corporation has decided to move this part of its operation to its wholly-owned subsidiary, NRC. This change, approved by NSC's board of directors, will be effective starting December 1, 2023.
The primary reason behind this organizational shift is to strengthen the company’s efforts in waste plastic processing. By moving the business to NRC, NSC aims to enhance its operational base. This is part of Japan's broader strategy for plastic resource circulation. NSC has been contributing to this strategy by recycling approximately 200,000 metric tons of household waste plastic containers and packages. This represents about 30% of the nationwide collection and results in a reduction of around 600,000 metric tons of CO₂ emissions per year.
The move is not just a corporate strategy but also an alignment with a social cause. This company split serves to bolster NSC's initiative named "Carbon Neutral Vision 2050," which is a plan to address the ongoing climate crisis. The stable recycling of waste plastic is a significant part of this vision.
This type of company split, known as an "absorption-type company split," does not require a general meeting of shareholders for approval, as per local laws. This is because the reorganization is between a parent company and its wholly-owned subsidiary, simplifying the process.
As a result of this split, no allotment of shares or any other financial considerations will be made. This is standard procedure for a company split between a parent company and a wholly-owned subsidiary. Furthermore, there are no issued stock acquisition rights by NSC that will be affected by this organizational change.
As for the timeline, the decision to go through with this split was made on October 20, 2023. Both the decision and the conclusion of the absorption-type company split agreement happened on the same day. The scheduled date for this to take effect is December 1, 2023.
NSC's decision to transfer its waste plastic recycling business to NRC is a strategic move aligned with both operational efficiency and environmental responsibility. This change will not only improve the company's waste plastic processing capacity but also fortify its stance on combating climate change through its "Carbon Neutral Vision 2050." Companies and stakeholders should see this as a forward-thinking model that combines business efficiency with social responsibility.