Nippon,Sumitomo join to become world's 2nd largest steel co

Announcing the formal merger, the Chairman and CEO of the newly-formed Board of the merged entity, Shoji Muneoka in a media statement said NSSMC aims to be "the best steel maker in the world".

NSSMC would strive to achieve the target by expanding the horizon of the business, reducing costs, pursuing advanced technologies and strengthening its non-steel business, Muneoka said.

"The climate of the steel industry is changing faster and more drastically than ever. In facing this challenge, we will act speedily and bravely in order to raise our corporate value and achieve sustainable growth," he said.

"Using our world-renowned technological prowess and manufacturing strength, we will strive to contribute to global economic growth and creation of an enriched society," he added.

The joint entity between world's sixth-largest Nippon Steel and 27th-ranked Sumitomo, with a combined capacity of 46.1 million tonnes combined capacity, will replace China's Hebei Group, which has a production of 44.4 million tonnes, according to data available from World Steel Association.

Japan is the second largest steel producer in the world with 107.6 million tonnes. Global steel production stood at 1,527 million tonnes in 2011. NRI billionaire L N Mittal-led ArcelorMittal contributed the maximum at 97.2 million tonnes to the overall global production.