Mark
March 12, 1999    

NKK Unveils Reorganization Plan


NKK, as part of an ongoing effort to enhance its competitive edge by improving profitability and strengthening its business foundation, has devised a reorganization plan, including revised personnel and benefits policies. The details of the plan are as follows:

Partial Reorganization of Steel and Engineering Operations

Selected operational divisions in the following works will be reorganized as separate companies,following comprehensive analysis of their respective business characteristics to strengthen their competitive advantages:

Keihin Works

  • Welded pipe operations will be reorganized for consolidation in group companies including Kokan Kenzai K.K., a construction materials subsidiary. NKK's electric-resistance welded pipe and butt-welded pipe operations will be reorganized as a new company by October 1999.
  • Galvanizing and color-coating, both of which are surface-treated steel sheet operations, will be reorganized as a new company by July 1999.
  • Other mill operations, such as ironmaking,steelmaking and hot-rolling, will be thoroughly streamlined for enhanced competitiveness.

Toyama Works

The works, comprising ferro-chrome and ceramic-related operations, will be reorganized as a new company by July 1999.

Shimizu Works

Steel-frame fabrication operations at the works will be reorganized as a new company by July 1999.

New Policies for Personnel and Benefits

As part of its aggressive ongoing efforts to improve profitability, NKK will take decisive steps to promptly and substantially reduce labor costs,including workforce reduction and revised personnel and welfare-related policies. As a result, NKK's total workforce will be reduced by 3,300, from15,300 as of September 1998 to 12,000 by the end of fiscal 1999.

As a further effort to improve profitability, NKK has also decided to discontinue its men's basketball team after the current winter season.


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Head Office: 1-1-2, Marunouchi, Chiyoda-ku, Tokyo 100-8202, Japan
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