Nippon Steel to Expand Tie-up with Suzuki Metal Industry

Nippon Steel announced on Monday the firm accepts third party allocation of shares of Tokyo based wire maker, Suzuki Metal Industry for 1.4 billion yen to expand the interest from current 22.08% to 34.77%. Nippon Steel tries to improve the supply ability by closer tie-up with the domestic largest spring steel wire and special steel wire in the integrated supply chain from materials to processed products when demand of automotive valve spring and suspension spring surges. Suzuki Metal Industry will invest the newly raising fund in strategic expenditure including expansion of spring steel wire output capacity. Suzuki Metal Industry produces automotive valve spring, suspension spring, piano wire, stainless wire and prestressed concrete wire with special steel wire rod from Nippon Steel group. The firm posted 14.2% higher consolidated recurring profit at 2 billion yen and 10.5% higher net profit at 900 million yen with 6.8% higher sales at 30.3 billion yen for fiscal 2005 ended March 2006 from fiscal 2004. The sales volume increased by 1.3% to 113,400 tonnes.