Nippon, Sumitomo to tie up

TOKYO: Two major Japanese steelmakers, Nippon Steel Corp. and Sumitomo Metal Industries Ltd., agreed Thursday to merge their stainless steel businesses to strengthen competitiveness.

The move was widely expected as both Nippon Steel and Sumitomo Metal said earlier this year they were working toward a stainless steel business alliance.

Under the basic agreement signed by Nippon Steel and Sumitomo Metal, the companies will sign an official agreement to integrate operations by the end of September, both sides said in a release.

Their combined stainless steel production would total about 1 million tons a year, one-third of Japan's annual output, she said. -- AFP