[Company analysis] Nisshin Steel Co., Ltd.(日新製鋼ホールディングス)

「Nisshin Steel Co., Ltd.(日新製鋼ホールディングス)」 is a Japanese steel company (blast furnace).  This company was Japan's largest stainless steel company. It is also the sixth largest steel company in Japan in the steel business and was listed in the Japanese 225 list. However, in 2014, it was absorbed and merged by「Nippon Steel Corporation(日本製鉄)」.

 

1. Summary and Features

 

 

1. Summary and Features

 
「Nisshin Steel 」was established by business integration between「Nihon Teppan(日本鐵板)」which was established in 1911 and「Nichia Steel Works(日亜製鋼)」which was established in 1908. Then, in 2012, the merger with「Nippon Metal Industry(日本金属工業)」 had been carried out (at this point, the sales department has already been integrated), and the merger process was completed in 2014.

The reason why「Nisshin Steel」was integrated by「Nippon Steel」was business circumstances such as falling steel prices and slowing economic growth in China.  The biggest reason was that the global production of stainless steel, which was a specialty of「Nisshin Steel」, was triggered to be increased by Chinese companies and this caused global oversupply.

As a result of the above business integration,「Nippon Steel Corporation」has achieved a 50% Japanese market share in the stainless steel field. In addition, the Japanese steel industry became largely consolidated into three companies: 「Nippon Steel Corporation」,「Kobe Steel, Ltd.,」and「JFE Holdings, Inc.」.