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  • Authorization of a Specified Business Restructuring Plan Submitted by Nippon Steel & Sumitomo Metal Corporation and Toho Titanium Co., Ltd. under the Industrial Competitiveness Enhancement Act

Authorization of a Specified Business Restructuring Plan Submitted by Nippon Steel & Sumitomo Metal Corporation and Toho Titanium Co., Ltd. under the Industrial Competitiveness Enhancement Act

On March 28, 2014, the Ministry of Economy, Trade and Industry (METI) authorized a specified business restructuring plan under the Industrial Competitiveness Enhancement Act, submitted by Nippon Steel & Sumitomo Metal Corporation and Toho Titanium Co., Ltd.

In accordance with this plan, Nippon Steel & Sumitomo Metal’s business involving the electron beam refining furnace (EB furnace) will be spun off and merged into its wholly-owned subsidiary, Nippon Steel & Sumitomo Metal Naotsu Titanium Corporation. In addition, the subsidiary will be funded by Toho Titanium Co., Ltd. so as to integrate both companies’ highly-qualified technologies and other techniques. By doing so, they will seek to expand the demand for competitive, highly-qualified titanium alloy in the market for aircraft titanium alloy, the demand for which is expected to grow.

1. Authorization of the Specified Business Restructuring Plan

METI examined the specified business restructuring plan submitted by Nippon Steel & Sumitomo Metal and Toho Titanium pursuant to Article 26, paragraph (4) of the Industrial Competitiveness Enhancement Act. METI concluded that the companies satisfied the requirements specified by said Act as entrepreneurs who are to carry out a business restructuring defined by Article 2, paragraph (12) of said Act, and authorized the plan.

The companies are now eligible for a reduction of the registration and license tax required for the capital increase and real property registration upon the absorption-type corporate split from Nippon Steel & Sumitomo Metal and the funding from Toho Titanium, as well as for a tax program for facilitating business restructuring.

2. Implementation Period

From April 2014 to March 2024

3. Applicants’ Profile

Name:
Nippon Steel & Sumitomo Metal Corporation
Capital:
419.524 billion yen
Representative:
Shoji Muneoka, Chairman and CEO
Head Office:
2-6-1 Marunouchi, Chiyoda Ward, Tokyo
Name:
Toho Titanium Co., Ltd.
Capital:
11.963 billion yen
Head Office:
3-3-5, Chigasaki, Chigasaki City, Kanagawa Prefecture

Reference:

For details of the Act, please visit the following website:
http://www.meti.go.jp/english/policy/economy/industrial_competitiveness_act/index.html

Release Date

March 28, 2014

Division in Charge

Nonferrous Metals Division, Manufacturing Industries Bureau

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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