The raw materials trading company industry which combines the great reorganization and the step of steelmaker A route to read from unification of Mitsui & Co. Steel Ltd.'s and Metal One Corporation's building materials

                                          IRUNIV 2013/07/16

 On 12th 03:00 p.m.,Mitsui & Co. Steel Ltd. and Metal One Corporation announced to start the press release of aiming an investigation toward business integration.
Press Releasepdf

 Further details was written as press release above. In short, the rationalization plan to integrate the domestic building materials market were rapidly shrinking in the past few years and the circulation of the raw materials of iron scrap. To cut a long story short, it means that the division of business firm of the raw materials of upstream also stepped into a full-scale restructuring while the blast furnace maker of downstream started the integration of the bold facilities. A signal gun of the great reorganization act of the trading companies was shot belatedly. The integration of Mitsui & Co. Steel Ltd.'s and Metal One Corporation's building materials this time (investigation started for it) will be a sign showing positively that the domestic steel raw materials industry has made a historic turning point. It is expected that taking this as an opportunity, the integration and abolishment of the raw materials trading companies will proceed rapidly.

 Mitsui & Co., Ltd. themselves do the reorganization resolutely, considering. The transferring control of the steel raw materials section from MitsuI Bussan Metals Co., Ltd. to Mitsui & Co. steel Ltd. is in April this year. At announcement two months from there, it is said that not only each company's customers of the same company, but employees of the same company as well, most were informed recently as said that it was being proceeded under water. Among them, several minutes after they went to pay respects such " thanks in advance for your help" to the maker, press release was announced. There was a story as there came somewhat confused call from the maker, and it was a considerably electrifying integration announcement if speaking of it. It indeed even seemed to be a shock in the meaning of "does the organization change again?" and the point that both sides of the tied partners was unexpected. It was a former integration that became 1+1 = 2. The integration in current country is that 1+1 =commonly1.5,and there is also a case of 1+1 = 1. The integration in domestic business is now synonymous with "reduction".

In accordance to Law of Entropy
 In a sense this is just a shock for the steel raw materials industry. In fact, it was already exposed to a big wind of the global economy early and the integration was repeated in the industry of finance, automobiles, electric equipment and electronic parts.
*There is a thermodynamic law called "Law of Entropy". This is the quantity that becomes big so that the materials and the energy are distributed uniformly. But to put it simply, by pouring water into bath, hot spring water will be equalized , and at the same time the material quantity will be big or the energy will scatter. At the present global industry,similar phenomenon is also happening in many places.
We can say that Japan's steel industry and raw materials industry are merely late. It may be said that they were slow to start moving. The megabanks and others have already carried out large-scale merging as the original bank and the current could not follow the story. So it is with the stock company.
The automobiles continued expanding overseas local production and pushed forward local procurement of steel materials, but Japan's steel industry was not able to follow the change of automotive industry which was a big user. There would be the existence of the anachronistic Fair Trade Commission as one reason why globalization was late.
image However, the world changes, and in European steel industry, the global integration which is crossing the border lightly will be implemented as represented by Arcelor Mittal. And yet, China which appeared with overwhelming production capacity,is proceeding integration and abolishment of facilities further, as even Arceloris is no match in front of China.
 In other words, the world steel industry is like an image of leading two lor three laps compared to Japan. Japan finally entered the first phase of globalization merely. Also similarly in stainless steel industry,thorough rationalization is performed, as even European No.1&No.2 stainless steel maker (Outokumpu & ThyssenKrupp AG) are integrated (Inoxum), there is a severity of the present global market where it will not become a strong foundation for profits.
In case of Japan, Nippon Steel & Sumitomo Metal has finallly begun to move, but as the person concerned with industry and the party understand it well, it starts from here. Kobe steel, Nisshin Steel as well as JFE steel of Honmaru. Eventually, if till the integration of Nippon Steel & Sumitomo Metal and JFE did not progress quickly, Japan iron (including stainless special steel) could not have survived in the world. This as a standard, while the surrounding environment of stainless steel, nonferrous metal industry, distribution trading company and wholesale dealer industry changes in conformity with Law of Entropy, it will become to think seriously about the position oneself and the plan for one's future.
(IRUNIV SUU)

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