Nippon Steel & Sumitomo Metal Corp (5401.T) on Thursday said it will buy Sweden’s Ovako which makes specialty steel used in industries including wind power generation and robotics, a move that gives Japan’s biggest steelmaker a manufacturing base in Europe.The purchase, its second international foray announced this month, also gives Nippon Steel a sales network in Europe besides adding 780,000 tonnes of annual output to the Japanese company’s roughly 45 million tonnes. Nippon Steel said on March 2 that it would boost investment, including mergers and acquisitions to 600 billion yen over the next three years to expand overseas.
TOKYO — Nippon Steel & Sumitomo Metal will buy Swedish counterpart Ovako Group and intends to turn equity-method affiliate Sanyo Special Steel into a subsidiary, forging ahead with a long-awaited business expansion as market conditions have improved. “Both companies have the world’s top-level production technologies,” Toshiharu Sakae, a Nippon Steel executive vice president, told reporters Thursday as the deals were announced. “We hope that the three companies will work together and combine technologies to strengthen the business foundation.” The Japanese company plans to raise its 15.3% stake in Sanyo Special Steel to at least 51% by the end of MarchRead more