NSSMC races to reap full potential of merger
Feb 25, 2013 | 03:35 PM
| Jo Isenberg-O’Loughlin
NEW YORK There was no escaping the urgency in Shoji Muneokas words as he delivered a New Years message to some 30,000 employees of the newly merged Nippon Steel & Sumitomo Metal Corp. (NSSMC).
Muneoka, chairman and chief executive officer of the worlds second- or third-largest steelmakerdepending on whose arithmetic you believeurged workers and management alike to "break through the remaining walls between both companies" and capture every ounce of competitive advantage inherent in the ongoing integration and restructuring of what prior to Oct. 1, 2012, stood separately as Japans largest and third-largest steelmakersand to do it quickly.
"The situation is dire," he said, citing the body blows delivered by "the so-called sextuple whammy" on Japans economy in general and the countrys steel sector in particular. On a macro scale, the island nation is wrestling with challenges ranging from an electric power supply problem and the appreciation of the yen to a trade balance that "is expected to become vulnerable to repeated deficits soon."
At the same time, Japanese steelmakers, which together produced 106.46 million tonnes of raw steel in 2011, face unsettling changes in market structures at home and offshore.
Besides a drop in demand for construction, Japanese manufacturers are accelerating a shift to overseas production and local procurement from overseas suppliers, Muneoka said. "As a result, it will be difficult for Japans domestic steel demand to recover from around 60 million tonnes per year to previous levels of 80 million tons."....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.