In a significant move to boost competitiveness and efficiency, Nippon Steel Corporation and its subsidiaries Nippon Steel Metal Products co. ltd., and Nippon Steel Pipe co. ltd. along with wholly owned subsidiary of Nippon Steel Coated Steel Pipe co. ltd. have announced a major business restructuring plan. The reorganization, set to take effect on April 1, 2025, aims to reform the domestic ERW steel pipe business and strengthen its market position.
Under the plan, Nippon Steel Metal Products will take over the commercial rights for construction steel pipes currently held by Nippon Steel Pipe through a company split. Meanwhile, Nippon Steel will absorb Nippon Steel Pipe’s mechanical steel pipe business through a merger.
Additionally, Nippon Steel Coated Steel Pipe will transfer its commercial rights for mechanical steel pipes to Nippon Steel. The production structures of Nippon Steel, Nippon Steel Metal Products, and Nippon Steel Coated Steel Pipe will also be optimized as part of the restructuring.
The move is expected to create a more efficient business structure and enhance the competitiveness of Nippon Steel and its subsidiaries in the domestic ERW steel pipe market. The companies have signed a memorandum of understanding (MOU) and will work towards finalizing the details of the restructuring in the coming months.
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