Nippon Steel targets overseas markets with name change

Japan's Nippon Steel & Sumitomo Metal (NSSMC) has renamed itself Nippon Steel as it seeks to expand in overseas markets amid shrinking demand in Japan.

The company is facing key challenges from a long-term decline in Japan's steel demand amid a shrinking population, as well as from protectionist measures being put in place around the world that favour domestically produced steel, company chairman Eiji Hashimoto said.

Nippon Steel will seek to increase profitability in its domestic and overseas operations. It aims to stabilise domestic output, after technical problems led to lower output and higher costs. And it will look to expand resources in high-demand growth countries and make use of its technological and product strength to raise its overseas profile.

Hashimoto pointed to the recent acquisition of India's Essar Steel by a joint venture between Nippon Steel and ArcelorMittal as an example of its overseas outreach.

Nippon Steel is the world's third-largest steel producer behind ArcelorMittal and China's Baowu Steel. It aimed to produce 20.8mn t of crude steel in October-March, the second half of its 2018-19 financial year.