Japanese steel producer Nippon Steel has announced that it will start a comprehensive study to evaluate the viability of consolidating the production in the Osaka area of Kansai Works into Sankyo Special Steel, a wholly-owned subsidiary of Nippon Steel, to accelerate the integration of Sankyo. The producer would shut down the corresponding equipment in Osaka and would expect the consolidation process to end in the fiscal year 2027-28.
“The special steel industry is changing globally, and the challenges it faces are becoming more complicated. Under these circumstances, in order to improve the corporate value of the entire group, it is necessary to develop a cooperative relationship with Sanyo Special Steel without being bound by constraints and to review and implement measures more rapidly and flexibly,” the company said in its statement.
Nippon Steel acquired Sanyo after a squeeze-out procedure on April 25, 2025.