OREANDA-NEWS. September 05, 2012. Nippon Steel Logistics Co., Ltd. (“Nippon Steel Logistics”), a wholly-owned subsidiary of Nippon Steel Corporation (“Nippon Steel”) and Sumitomo Metal Logistics Service Co., Ltd. (“Sumitomo Metal Logistics”), a wholly-owned subsidiary of Sumitomo Metal Industries, Ltd. (“Sumitomo Metals”), have agreed to integrate and reorganize their business operations on the scheduled date of April 1, 2013.

Resolutions regarding the integration and reorganization were adopted at board of directors meetings of Nippon Steel, Sumitomo Metals, Nippon Steel Logistics, and Sumitomo Metal Logistics.

The planned name of the integrated company is NIPPON STEEL & SUMIKIN LOGISTICS CO., LTD. (“Nippon Steel & Sumikin Logistics”), and it will be wholly owned by Nippon Steel & Sumitomo Metal Corporation.

1. Objectives of the Business Integration and Reorganization

The logistical functions of Nippon Steel Logistics and Sumitomo Metal Logistics have contributed to the corporate value of respective groups by satisfying customer needs, including those of Nippon Steel and Sumitomo Metals. The new company aims to realize integration synergies quickly and become an efficient, profitable and competitive logistics company.

2. Outline of the Business Integration and Reorganization

(1) Method of business integration and reorganization

The Kashima Division and the Kyushu Division of Sumitomo Metal Logistics will be turned into regional subsidiaries and the head office functions of Sumitomo Metal Logistics will be integrated with Nippon Steel Logistics. The organization of Nippon Steel & Sumikin Logistics will be: the operating holding company will own regional companies located at steelworks of Nippon Steel & Sumitomo Metal Corporation. This structure resembles the organization of Nippon Steel Logistics.
(2) Schedule for business integration and reorganization

September 5, 2012 Signing of basic agreement regarding the integration and reorganization of Nippon Steel Logistics and Sumitomo Metal Logistics

April 1, 2013 Effective date of company split and share exchange (business integration and reorganization date) (scheduled) ion and Reorganization Preparation Committee, established by both Nippon Steel Logistics and Sumitomo Metal Logistics will make a plan of specific matters.

(3) Specific details of business integration and reorganization
The Integration and Reorganization Preparation Committee, established by both Nippon Steel Logistics and Sumitomo Metal Logistics will make a plan of specific matters.