Nippon Steel to consolidate Osaka Steel, forging operations into Sanyo Special Steel

Nippon Steel Corporation (TSE: 5401) said it would
consolidate the production of steel and free-forged products from
its Osaka Area of Kansai Works into Sanyo Special Steel Co., Ltd.
(TSE: 5481), its wholly owned subsidiary based in Himeji, Hyogo
Prefecture, as part of a broader effort to enhance group-wide
manufacturing efficiency and competitiveness.

The move follows Nippon Steel’s acquisition of full ownership of
Sanyo Special Steel in April 2025, a decision aimed at
strengthening collaboration and accelerating decision-making across
the group amid increasingly complex global conditions in the
special steel industry.

The consolidation plan, now finalised, includes detailed
timelines, product scopes and facility transfers. Production of
steel ingots and free-forged products — such as plastic moulding
dies and rolling mill rolls — will be centralised at Sanyo Special
Steel. Special melting and free-forging equipment, including
horizontal presses from the Osaka Area, will be transferred, while
certain facilities such as electric arc furnaces, ingot casting and
vertical pressing lines will be suspended.

The process is expected to be completed in the first half of the
2030 financial year, with major equipment suspensions planned by
the third quarter of FY2028. Nippon Steel said the restructuring
would improve cost competitiveness at the Osaka Area and bolster
the group’s overall manufacturing capabilities.

The company added that beyond the consolidation of production,
the integration aims to create broader synergies across the group.
These include optimising production systems for other product
lines, expanding sales through closer commercial cooperation,
strengthening technological and solutions capabilities, advancing
its global strategy, and improving raw material procurement —
particularly for steel scrap.

Nippon Steel said the changes form part of its ongoing effort to
raise corporate value and solidify its position as a global leader
in advanced steel materials.