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Suzuki Metal Industry Becomes a Nippon Steel Subsidiary
06/16/2009 - Nippon Steel completes payment for its purchase of new shares in Suzuki Metal Industry, making Suzuki a subsidiary of Nippon Steel as a result of the transaction.
Nippon Steel Corp. has completed payment for its subscription for new shares in Suzuki Metal Industry Co., Ltd. As a result of the purchase, which was made through a third-party allotment, Suzuki Metal has become a subsidiary of Nippon Steel.
Suzuki Metal, already a part of the Nippon Steel Group, processes value-added special wire rod products. Late last year, Suzuki Metals acquired the Swedish wire maker Haldex Garphyttan AB, which is now known as Suzuki Garphyttan AB. The acquisition was intended to expand Suzuki Metal’s global valve spring wire business and help it to achieve further profit growth.
Suzuki Metal, already a part of the Nippon Steel Group, processes value-added special wire rod products. Late last year, Suzuki Metals acquired the Swedish wire maker Haldex Garphyttan AB, which is now known as Suzuki Garphyttan AB. The acquisition was intended to expand Suzuki Metal’s global valve spring wire business and help it to achieve further profit growth.
Nippon Steel’s purchase of the new shares issued by Suzuki Metal will help to partially finance Suzuki’s Haldex Garphyttan acquisition. With completion of the share purchase, Nippon Steel’s stake in Suzuki Metals rises from 35.90% to 66.59%, and Suzuki Metal becomes a consolidated subsidiary of Nippon Steel.
Securing global supply capability was critical for Suzuki Metal, as many of its customers in the relatively mature domestic automotive and electronics-related industries are entering overseas markets in search of new growth opportunities. The Garphyttan acquisition was designed to capitalize on both Suzuki’s strong relationships with Japanese end users as well as Garphyttan’s valve spring wire production bases in Europe, North America and China. Suzuki Metal will, as the largest valve spring wire manufacturer in the world, aim to realize profit growth by expanding its global business, improving technology and maintaining competitiveness.
By further strengthening its ties with Suzuki Metal and providing support for its global development, Nippon Steel will continue to strengthen its own leadership as a global player in the high quality wire rod business.
Founded on May 1, 1938, Suzuki Metal Industry Co. produces and sells valve spring wire, piano wire, stainless steel wire, titanium wire, special wire products, etc. Headquartered in Tokyo, the company employs 819 as of December 31, 2008. Suzuki reported sales of 36.7 billion (on a consolidated basis) for the year ended March 31, 2009.
Founded on May 1, 1938, Suzuki Metal Industry Co. produces and sells valve spring wire, piano wire, stainless steel wire, titanium wire, special wire products, etc. Headquartered in Tokyo, the company employs 819 as of December 31, 2008. Suzuki reported sales of 36.7 billion (on a consolidated basis) for the year ended March 31, 2009.
