Nippon Steel and its wholly owned subsidiary Nippon Steel Pipe have agreed to reorganize Nippon Steel Pipe’s overseas business of electric resistance welded pipe for automotive applications. The business, which has been positioned under Nippon Steel Pipe within the Nippon Steel Group, will be transferred to Nippon Steel in order to adapt to today’s changing market environment and strengthen the business. Nippon Steel Pipe will be split into two companies, one which will own the shares of Nippon Steel Pipe’s overseas subsidiaries and the other which will operate the domestic business. Effective date of split is 1 October 2022.Overseas business companies that operate the businessNippon Steel Pipe America, USA - 80.0%Nippon Steel Pipe Mexico, Mexico - 73.7%Nippon Steel Pipe Guangzhou, China - 66.0%Wuxi Nippon Steel Pipe, China - 71.0%Vietnam Nippon Steel Pipe, Vietnam - 60.0%Nippon Steel Pipe (Thailand), Thailand - 57.6%Thai Steel Pipe Industry, Thailand - 55.0%Siam Nippon Steel Pipe, Thailand - 60.5%Indonesia Nippon Steel Pipe, Indonesia - 60.0%Nippon Steel Pipe India, India - 85.5%Guangzhou Asahi-NS-Manufacturing Automotive Parts, China - 20.0%Nippon Steel said “With regard to the environment surrounding the Business, while automobile production levels have slowed due to the COVID-19 pandemic and caused stagnation in the supply chain, we expect to see qualitative composition changes in the market persist, such as the ongoing growth in SUV vehicles and rise of electric vehicles in the future. To ensure that the business survives and grows amid this environment, we have decided to transfer the business from Nippon Steel to Nippon Steel, as it is deemed essential for taking advantage of growth opportunities by fully utilizing the expertise and technological and developmental capabilities that Nippon Steel has cultivated to date.”Nippon Steel added “This transfer will enable the Business to further integrate its global business strategies, optimize the production system, and pursue a product mix that is suitable for the production assets at each site. At the same time, the transfer will enable Nippon Steel Pipe to focus on its domestic business, thereby concentrating management resources and further strengthening cost competitiveness. Overall, this will enable the Nippon Steel Group to optimize the structures of both overseas and domestic business.”
Nippon Steel and its wholly owned subsidiary Nippon Steel Pipe have agreed to reorganize Nippon Steel Pipe’s overseas business of electric resistance welded pipe for automotive applications. The business, which has been positioned under Nippon Steel Pipe within the Nippon Steel Group, will be transferred to Nippon Steel in order to adapt to today’s changing market environment and strengthen the business. Nippon Steel Pipe will be split into two companies, one which will own the shares of Nippon Steel Pipe’s overseas subsidiaries and the other which will operate the domestic business. Effective date of split is 1 October 2022.Overseas business companies that operate the businessNippon Steel Pipe America, USA - 80.0%Nippon Steel Pipe Mexico, Mexico - 73.7%Nippon Steel Pipe Guangzhou, China - 66.0%Wuxi Nippon Steel Pipe, China - 71.0%Vietnam Nippon Steel Pipe, Vietnam - 60.0%Nippon Steel Pipe (Thailand), Thailand - 57.6%Thai Steel Pipe Industry, Thailand - 55.0%Siam Nippon Steel Pipe, Thailand - 60.5%Indonesia Nippon Steel Pipe, Indonesia - 60.0%Nippon Steel Pipe India, India - 85.5%Guangzhou Asahi-NS-Manufacturing Automotive Parts, China - 20.0%Nippon Steel said “With regard to the environment surrounding the Business, while automobile production levels have slowed due to the COVID-19 pandemic and caused stagnation in the supply chain, we expect to see qualitative composition changes in the market persist, such as the ongoing growth in SUV vehicles and rise of electric vehicles in the future. To ensure that the business survives and grows amid this environment, we have decided to transfer the business from Nippon Steel to Nippon Steel, as it is deemed essential for taking advantage of growth opportunities by fully utilizing the expertise and technological and developmental capabilities that Nippon Steel has cultivated to date.”Nippon Steel added “This transfer will enable the Business to further integrate its global business strategies, optimize the production system, and pursue a product mix that is suitable for the production assets at each site. At the same time, the transfer will enable Nippon Steel Pipe to focus on its domestic business, thereby concentrating management resources and further strengthening cost competitiveness. Overall, this will enable the Nippon Steel Group to optimize the structures of both overseas and domestic business.”
