| November 19, 1998 |
New Company Set Up to Take Over Operations of Toa SteelNKK recently set up a new company to take over the business operations of Toa Steel Co., an NKK electric-furnace steelmaking subsidiary, which decided to dissolve itself in March 1999 due to a business failure. NKK Bars & Shapes Co., Ltd., with ¥30 billion in capital wholly invested by NKK, will start its full-scale business operations in April 1999. It will be responsible for steel bars and shapes business transferred from Toa. It will also take over part of the large section mill at NKK's Fukuyama Works. Headquartered in Tokyo, the new company will have about 1,200 employees. It projects initial sales of about ¥150 billion per year. Starting in April 1999, production and marketing operations for long products will be shared by NKK and the new company, with both firms dividing responsibility according to product. H-shapes(wide flange beams), sheet pilings, rails and sections for shipbuilding will be handled by NKK, while other shapes, such as angles and channels, as well as bars and wire rods (excluding those currently sold under NKK brands), will be handled by the new company. Operations for exterior products (including steel fences and nets), which have thus far been handled by Toa, will be fully transferred to Nippon Kokan Light Steel K.K., another NKK group company handling construction materials. By integrating the competitive advantage of NKK group companies and by further rationalizing operations, the new company expects to quickly increase its profitability. |
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