Nippon Steel Corp. (NSC) will merge with Nippon Steel Coated Sheet Corporation (NISC) and Nippon Steel Nisshin A&C Co. Ltd. (NSNAC) in July 2020 to strengthen competitiveness in the exterior building material steel sheet business.
While the four companies do frequently collaborate, an official merger will help the Japanese steelmaker keep apace social changes that are transforming industrial structural design.
The four companies do collaborate, but a merger will prove a sound strategy amid transformations to social and industrial s, said the Japanese steelmaker.
The company also expects domestic demand for exterior building material steel sheets to decrease in the both the medium- and long -term, it said in an investor filing. Moreover, it expects construction efficiency should improve, thereby necessitating high-performance materials with advanced seismic and durability performance.
The merger also involves integrating NISC and NSNAC’s business fields, which include sales and technology.