NSSMC set to merge Thai pipe subsidiaries
Japan’s Nippon Steel & Sumitomo Metal Corp (NSSMC) has announced that it would integrate its two electrical resistance welded pipe and tube producers in Thailand
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The two companies – Siam Nippon Steel Pipe (SNP) and Thai Steel Pipe Industry (TSP) – are expected to be integrated in July. The amalgamated entity will be called Nippon Steel & Sumikin Pipe (Thailand) Co (NSPCT), according to a statement from the Japanese steelmaker on released on Thursday March 27.
The move will see SNP and TSP being dissolved and NSPCT assuming all of their assets and liabilities, in accordance with the laws and regulations of Thailand, the Japanese steelmaker said.
“The two companies have decided to merge so they can satisfy their customers’ needs more effectively and accurately than ever before by consolidating business foundation and establishing a more efficient management structure as well,” it added.
SNP was established in 1995 as a subsidiary of the former Nippon Steel Corp, while TSP, created in 1963, was a subsidiary of former Sumitomo Metal Industries. Nippon Steel Corp and Sumitomo Metal Industries merged in 2012 to form NSSMC.
Once integrated, NSPCT will have total capacity of 176,000 tpy of tube and pipe that will mainly go to the automotive industry.
NSSMC’s pipe arm, Nippon Steel & Sumikin Pipe (NSSP), will have a controlling 57.6% stake of the new company.
Other stakeholders will include Sumitomo Corp Group, which will hold a 15.5% stake, Mitsui & Co with 7.8%, Okaya & Co with 6.4%, and Metal One Corp with 6.2%.
The merger is subject to governmental approvals and licences required to be obtained, as well as consents, approvals, waivers and other necessary protective procedures for all the third parties, lenders and creditors of the two companies, NSSMC said.