Nippon Steel, Sumitomo Metals Merger is Best Option, Mr. Muneoka

Nippon Steel’s president Shoji Muneoka said on Friday proposed merger with Sumitomo Metal Industries is best option. He emphasized at general meeting held in Tokyo Nippon Steel seeks growth through combination with Sumitomo Metals to survive severe international competition with offshore new rivals and to follow growing demand in the world while domestic demand decreases and raw materials cost keeps increasing.

Mr. Muneoka said through the merger the combined company can have world class scale, technology and globalization by utilizing resources in human resources, assets and financial strength. He said the firm seeks world top level of global steel company through the synergy.

Mr. Muneoka and other executives answered to 23 questions from 11 shareholders. The questions included merger on group companies, human resource policy, steel price hike, equity in raw materials assets, operations’ preparations for disaster and polysilicon business condition. The attendees were 2,481 shareholders, which was lower than 2,492 in 2010. The meeting took 2 hours 14 minutes compared with 2 hours 9 minutes in 2010.