Katakura Steel Tube to Become an NSSMC Subsidiary

2017-12-15

Dec. 06, 2017 - Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) and Katakura Steel Tube Co., Ltd. (“Katakura Steel Tube”), an equity-method affiliate of NSSMC (with a 24.9% shareholding), have agreed that NSSMC will acquire additional shares of common stock of Katakura Steel Tube and make it a subsidiary (with a stake of around 80%).

1. Purpose of the Transaction

 

In the area of steel tubes for automobiles and construction machinery, strengthened environmental regulations and other reasons are expected to increase manufacturers’ requirements for high-performance components, including those of lightweight and high-fatigue-durability products. To satisfy such requirements, NSSMC and Katakura Steel Tube have agreed that it should be best for both companies to bring their technological strengths together: namely, NSSMC’s strength in manufacturing steel tubes and Katakura Steel Tube’s strength in cold drawing processing. On December 6, 2017, a stock acquisition agreement was executed whereby NSSMC will acquire shares of common stock of Katakura Steel Tube held by its major individual stockholders to become Katakura Steel Tube’s 80% stockholder. After this transaction, Katakura Steel Tube, as a subsidiary of NSSMC, will be better positioned to develop and provide high-grade products which satisfy its customers’ requirements. 

2. Expected Schedule

December 6, 2017:	A stock acquisition agreement is executed.
Around late January 2018:	After obtaining a clearance from the Japan Fair Trade Commission,   NSSMC implements acquisition of the common stocks and   Katakura Steel Tube becomes a subsidiary of NSSMC.
Around April 2018:	Katakura Steel Tube changes its trade name to Nippon Steel  & Sumikin Katakura Tube Co., Ltd.

3. Overview of NSSMC and Katakura Steel Tube

Trade Name	Nippon Steel & Sumitomo Metal  Corporation	Katakura Steel Tube Co., Ltd.
Business Activities	teelmaking and steel fabrication;   engineering and construction;   chemicals; new materials;   system solutions	Cold-drawn tubes  (extensible tubes)
Establishment	1950	1955
Head Office Location	6-1, Marunouchi 2-chome,  Chiyoda-ku, Tokyo	1-21, Fuso-cho, Amagasaki-  shi, Hyogo Prefecture
Name and Title of   the Representative	Kosei Shindo,   Representative Director and President	Yasufumi Imamoto,   Representative Director   and President
Net Sales  (Consolidated Basis)	4,632.8 billion yen (FY 2016)	6.6 billion yen (FY 2016)
Capital	419.5 billion yen	100 million yen
Number of Employees	24,822 (as of March 31, 2017)	127 (as of March 31, 2017)