JFE Steel Corporation has entered into a share purchase agreement with Riken Corporation under which a portion of its shares in JFE Pipe Fitting Mfg will be transferred to Riken Corporation on 31 March 2023, leaving JFE Steel with a 9.994% stake in JFE Pipe Fitting. The move is part of JFE Steel’s plan to deploy its corporate resources more efficiently and strategically. JFE Pipe Fitting, founded in 1935, produces high-quality fittings and prefabricated piping under its Ring brand as a specialized manufacturer of piping systems within the JFE group. With the Japanese population now in decline, the domestic market for piping systems is expected to shrink over the long term. JFE Pipe Fitting aims to develop new products, optimize its production systems and generate new demand, thereby securing sustainable growth. Riken manufactures automotive and industrial machinery parts, such as piston rings. Under its PLAN2022 medium-term business plan, the company is working to expand its business in automotive fields in principle not centered on internal combustion engines, focusing on areas with which the company has high affinity. The company expects to benefit from solid demand over the medium to long term in view of the important roles many of its piping products play in supporting critical infrastructure. Given the underlying potential for strong growth through the development of new products, Riken aims to strengthen and expand its piping business as the company’s core field. Overview of JFE Pipe Fitting Mfg Business: Manufacture and sale of fittings for gas, water and other piping; parts for architectural and industrial machines; and processing of prefabricated pipes Consolidated sales (FY ending March 2022): 12,469 million yen Ownership: JFE Steel C86.55%, Osaka Gas 6.06%, Sompo Japan Insurance 2.50%, Shinwa Sangyo 1.56%, Aioi Nissay Dowa Insurance 1.25%, Furubayashi Sangyokigu 1.04% and OTEC 1.04%
JFE Steel Corporation has entered into a share purchase agreement with Riken Corporation under which a portion of its shares in JFE Pipe Fitting Mfg will be transferred to Riken Corporation on 31 March 2023, leaving JFE Steel with a 9.994% stake in JFE Pipe Fitting. The move is part of JFE Steel’s plan to deploy its corporate resources more efficiently and strategically. JFE Pipe Fitting, founded in 1935, produces high-quality fittings and prefabricated piping under its Ring brand as a specialized manufacturer of piping systems within the JFE group. With the Japanese population now in decline, the domestic market for piping systems is expected to shrink over the long term. JFE Pipe Fitting aims to develop new products, optimize its production systems and generate new demand, thereby securing sustainable growth. Riken manufactures automotive and industrial machinery parts, such as piston rings. Under its PLAN2022 medium-term business plan, the company is working to expand its business in automotive fields in principle not centered on internal combustion engines, focusing on areas with which the company has high affinity. The company expects to benefit from solid demand over the medium to long term in view of the important roles many of its piping products play in supporting critical infrastructure. Given the underlying potential for strong growth through the development of new products, Riken aims to strengthen and expand its piping business as the company’s core field. Overview of JFE Pipe Fitting Mfg Business: Manufacture and sale of fittings for gas, water and other piping; parts for architectural and industrial machines; and processing of prefabricated pipes Consolidated sales (FY ending March 2022): 12,469 million yen Ownership: JFE Steel C86.55%, Osaka Gas 6.06%, Sompo Japan Insurance 2.50%, Shinwa Sangyo 1.56%, Aioi Nissay Dowa Insurance 1.25%, Furubayashi Sangyokigu 1.04% and OTEC 1.04%
