Specific approaches to the consolidation, including the scope of products and facilities as well as the timing have now been finalized.
The business environment surrounding the special steel industry is changing globally, and the challenges it faces are becoming more complicated. Under these circumstances, Nippon Steel made Sanyo Special Steel its wholly-owned subsidiary as of 25.04.2025 to improve the entire group’s corporate value by developing a cooperative relationship between Nippon Steel and Sanyo Special Steel without being bound by constraints and reviewing and implementing measures and policies more swiftly and flexibly.
As part of the effort to generate synergistic effects by wholly owning Sanyo Special Steel, the companies have decided to consolidate the production of steel products and free forged products, which are currently manufactured using similar equipment at both companies, into Sanyo Special Steel from Nippon Steel’s Osaka Area of Kansai Works. In doing so, the relevant equipment from Osaka Area will be transferred to Sanyo Special Steel or its operation will be suspended. This will help strengthen the cost competitiveness for the Osaka Area and enhance the group’s manufacturing capabilities.
Outline of consolidation of production
| Target products | Steel products (steel ingots) Free forged products (such as plastic molding dies and rolling mill rolls) |
| Equipment to be transferred | Nippon Steel Osaka Area of Kansai Works/special melting equipment, horizontal press and other free forging equipment |
| Equipment to be suspended | Nippon Steel Osaka Area of Kansai Works/electric arc furnace through ingot casting equipment, free forging vertical press |
| Location of consolidation of production | Sanyo Special Steel Co., Ltd. (Himeji-Shi, Hyogo Prefecture) |
| Expected completion of consolidation of production | Within FY2030 1H (Equipment suspended: Within Q3, FY2028) |
In addition to consolidating the production of these products, Nippon Steel and Sanyo Special Steel will make efforts to generate synergy effects from various viewpoints and improve the corporate value of the whole Nippon Steel Group. These efforts include creating optimal production systems for other products, expanding sales through sales cooperation, strengthening the abilities to make technological and solutions proposals by technological cooperation, further enhancing/expanding the global strategy, and improving measures for raw material procurement such as scrap procurement.
(Source: Nippon Steel)
