Nippon Steel Corporation has announced a major restructuring of its coated sheet business, involving its subsidiaries Nippon Steel Coated Sheet Corporation and Nippon Steel Pipe Co., Ltd. The reorganization, set to take effect on April 1, 2025, aims to create a more efficient business structure and enhance the competitiveness of Nippon Steel and its subsidiaries in the domestic ERW steel pipe market.
Under the plan, Nippon Steel Metal Products will take over the commercial rights for construction steel pipes currently held by Nippon Steel Pipe through a company split. Meanwhile, Nippon Steel will absorb Nippon Steel Pipe's mechanical steel pipe business through a merger.
Additionally, Nippon Steel Coated Steel Pipe will transfer its commercial rights for mechanical steel pipes to Nippon Steel. The production structures of Nippon Steel, Nippon Steel Metal Products, and Nippon Steel Coated Steel Pipe will also be optimized as part of the restructuring.The companies have signed a memorandum of understanding (MOU) and will work towards finalizing the details of the restructuring in the coming months.