NLM and JS Group Start Al Building Material Tie-up Negotiation

Nippon Light Metal (NLM), Shin Nikkei Company (NLM’s subsidiary), JS Group Corporation and Tostem Corporation (JS Group’s subsidiary) announced on Wednesday the 4 companies started tie-up negotiation for their aluminium architectural material business including capital alliance. The tie-up essences are cost reduction measures in distribution and procurement, sending executive officers from JS Group to Shin Nikkei, and JS Group’s 30% equity acquisition in Shin Nikkei.

The 4 companies explained the reason for this negotiation start that NLM and JS Group agreed in mutual utilization of their management resources and standard integration of aluminium architectural materials when domestic new housing starts are decreasing while the demand is surging for longer home life duration. They aim to improve the business profitability by tie-up synergies and cost cut effects after operative optimization and scale merit.

NLM also announced on Wednesday the firm keeps business tie-up with Sankyo-Tateyama Holdings and its subsidiary, Sankyo Tateyama Aluminium. Shin Nikkei will become to conclude each alliance with Tostem and Sankyo Tateyama Aluminium.