Japan’s Nippon Steel plans to merge three pipe subsidiaries, Nippon Steel Katakura Tube Co., Ltd., Tsurumi Kokan Co., Ltd., and Nippon Steel Fine Tube Co., Ltd., to optimize operations and address market changes.

The three companies supply steel pipes to the automotive, construction, and industrial equipment sectors. They are currently facing challenging conditions, including a prolonged slump in domestic steel demand, labor shortages, and shifting demand due to vehicle electrification.

The merger will create a new entity, Nippon Steel Fine Tube Co., Ltd., effective on January 1, 2026, pending shareholder approval. This move is to establish a comprehensive system to enhance customer service and solution-offering capabilities within the Nippon Steel Group.