History of Nippon Steel & Sumitomo Metals Corporation
Nippon Steel & Sumitomo Metals Corporation (NSSMC) is the fourth largest steelmaker in the world, producing ~46 million tonnes of steel in 2016.
The timeline below covers the history of the firm.
- 1901: Start of steelmaking operations of Yawata Steel Works.
- 1934: Japan I&S formed from merger of several mines & works.
- 1950: Fuji Steel formed from assets of Japan Iron & Steel.
- 1970: Fuji Steel and Yawata Steel merged into Nippon Steel Corp.
- 1975: Nippon Steel becomes largest steelmaker in the world.
- 1987: Downsizing announced - closure of 5 BFs, loss of 19000 jobs.
- 1987: Start-up of I/N Tek cold rolling jv announced [with Inland].
- 1989: Formation of I/N Kote jv [Inland Steel jv, auto HDG and EGL].
- 2003: Arcelor, Baosteel and Nippon - auto steel jv formed in China.
- 2003: Consolidation of stainless units of Nippon & SMI into NSSC.
- 2006: Nippon introduces defence measures for hostile takeovers.
- 2008: ArcelorMittal expands Nippon jv: new galv line at I/N Kote.
- 2011: Tata Steel & Nippon Steel sign jv deal to build CAPL in India.
- 2011: Nippon Steel & Sumitomo Metal Industries reveal merger plan.
- 2012: Coated steel jv signed with BlueScope Steel.
- 2012: Nippon & Sumitomo merge into Nippon Steel & Sumitomo Metal Corp.
- 2013: Mozambique Gov approves start of work on Revuboe Coal Mine Project.
- 2013: Signals emphasis on merger integration & cost-cutting Q4 2013.
- 2013: NSSMC (& others) buy ThyssenKrupp Alabama steel mill.
- 2014: Announces plan for new cold heading wire plant in China.
- 2015: Acquires another 10% stake in Boggabri coalmine from Japan’s Idemitsu.
- 2016: Announces 2017 consolidation plan for Nisshin Steel.
- 2016: SSMC and Vallourec merge seamless pipe and tube business in Brazil.
- 2016: Court battle with Technint over control of Usiminas in Brazil.
- 2017: CEO of NSSMC subsidiary Usiminas dismissed 23-Mar-17.
- 2017: NSSMC reverses seemingly wrongful dismissal of Usiminas CEO 24-Mar-17.
- 2017: NSSMC completes purchase of 51% stake in Nisshin Steel.
- 1934 consolidation involved the Wanishi Iron Works, the Kamaishi Mines, Mitsubishi Iron, Kyusyu Steel, Tokyo Steel and other assets.
- 1975: Nippon ranking as top steelmaker (with US Steel displaced from the top position) is by crude steel production volume.
- 2003: Arcelor, Baosteel, Nippon jv centres on a Shanghai facility close to upstream plant of Bao Steel - which will focus on cold rolling and galvanising [annual capacity of 1.7 mt of flat rolled steels].
- 2003: The merger of the stainless steel divisions of Sumitomo Metal Industries and Nippon steel created Japan's largest stainless steelmaker - Nippon Steel and Sumikin Stainless Steel Corporation [NSSC].
- 2006: Following Mittal's bid for Arcelor, most Japanese steelmakers took measures to prevent hostile takeover bids incl Nippon, JFE, Sumitomo Metal Industries and Kobe Steel Ltd.
- 2011: Tata / Nippon jv is for 600kt/yr automotive cold-rolled steel continuous anneal and process line at Jamshedpur, India.
- 2011: Merger of Nippon Steel and Sumitomo Metal Industries is subject to antitrust approval by the Japan Fair Trade Commission [review underway as at mid-2011].
- 2012: In a 50-50 jv named NS BlueScope Coated Products, Nippon Steel will acquire half of BlueScope's interest in its South East Asian and North American building products businesses.
- 2012: With the creation of Nippon Steel & Sumitomo Metal Corporation, the company became the second largest steelmaker in the world.
- 2013: Expected launch of Tenigal [hot-dip galvanized and galvannealed sheets] in Monterrey, Mexico.
- 2013: Nippon Steel owns 33.3% stake in the Mozambique mine project and is looking to commence production in 2016. The Revuboe coal mine is estimated to have coking coal reserves of ~1.4 billion tonnes and is expected to produce 5 million tonnes of coking coal per year at its peak [which Nippon aims to reach by 2019].
- Nippon Steel & Sumitomo Metal Corporation and ArcelorMittal in November 2013 acquired ThyssenKrupp's Alabama steel mill in Calvert for $1.55 billion.
- 2016: NSSMC is the largest shareholder in Japan's fourth-largest steelmaker Nisshin Steel with a stake of around 8 percent. NSSMC plans to increase this stake to somewhere between 51-66% in the next 18 months or so. Nisshin Steel will then become a subsidiary of Nippon Steel (around March 2017) but Nisshin Steel's shares will remain listed on the Tokyo Stock Exchange.
- 2016: The businesses of (i) Vallourec & Sumitomo Tubos do Brasil Limitada, which is a joint venture of Vallourec Group, NSSMC Group and Sumitomo Corporation, and is a Brazilian seamless pipe manufacturing company and (ii) Vallourec Tubos do Brasil S.A., which is Vallourec's fully-owned subsidiary of a seamless pipe manufacturing and sales company in Brazil, merged in October 2016 to become Vallourec Solucoes Tubulares do Brasil.
- 2016: Note that at the end of 2016, the dominant shareholders of Usiminas included NSSMC with 21.1%, Ternium/Tenaris with 19.8% and the Usiminas Pension Fund with 4.8% equity ownership.
- 2017: Nippon Steel & Sumitomo Metal Corporation completed procedures to acquire 51% of the shares of common stock of Nisshin Steel Co and made the company a subsidiary of NSSMC in March 2017.
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