NISC and NSNAC to merge in July 2020

Nippon Steel Coated Sheet Corporation (NISC), which is a wholly owned subsidiary of Nippon Steel Corporation (NSC), and Nippon Steel Nisshin A&C Co. Ltd. (NSNAC), which is a wholly owned subsidiary of Nippon Steel Nisshin Co. Ltd. (NSN) have decided to merge in July 2020 in order to strengthen the competitiveness of the NSC Group’s exterior building material steel sheet business (mainly the manufacture and sales of coated and painted sheets and coils for roofing and walling). The details of the merger are as followed. 

1. Purpose of the merger 

The NSC Group has been promoting its exterior building material steel sheet business, positioning NISC and NSNAC as core group companies in that business, and the four companies above have made cooperative efforts ever since NSC acquired NSN as its subsidiary in order to maximize synergies in sales collaboration and in the improvement of production/logistics efficiency, etc. 

However, the environment surrounding the current steelmaking business is facing changes in social and industrial structures, etc., in addition to significant changes in the steel supply and demand structure. Under such environment, domestic demand for exterior building material steel sheets is expected to decrease on a medium to long-term basis, while construction efficiency is expected to improve and need for high-performance materials having advanced seismic and durability performance is also expected to increase. 

Based on the trends and other factors of the exterior building material steel sheet market and as a result of considering measures to strengthen the NSC Group’s competitiveness in the exterior building material steel sheet business, the NSC Group has determined that it would be the most effective if NISC and NSNAC operate in an integrated manner in all business fields, including sales and technology, and has decided to merge the two companies. 

2. Outline of the merger 
1. Companies involved in the merger Nippon Steel Coated Sheet Corporation (NSC’s shareholding ratio: 100%) Nippon Steel Nisshin A&C Co., Ltd. (NSN’s shareholding ratio: 100%) 
2. Effective date of the merger July 1, 2020 (planned) 

3. Method of the merger absorption-type merger in which NISC will be the surviving company and NSNAC will be the disappearing company

Press release courtesy of Nippon Steel Corporation
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