Japanese stainless merger

摘要

Nippon Steel and Sumitomo Metal Industries have finally signed a long-awaited letter of intent to amalgamate their stainless steel operations. The deal, signed on June 13 by Nippon president Akira Chihaya and his SMI counterpart Hiroshi Shimozuma, cements an alliance first tabled openly in February but under discussion for many months before then. Nippon Steel and SMI are the key players in the bloc that is forming in competition to the Kawasaki-NKK alliance, JFE Steel. The exact nature of the new stainless producer will become clearer in September when the companies are due to sign a definitive contract. Full integration looks set to take place in April 2003, forming a company producing in excess of 1 m tonnes of stainless flat products, bar and wire rod.