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Gate 3 Medium-term Management Plan

Iron & Steel Products Segment

Iron & steel products business / Gestamp Automoción S.A. (Spain)

Iron & steel products business / Gestamp Automoción S.A. (Spain)

  • Iron & Steel Products Business Unit
Business Activities

To respond to diverse industrial and latent customer needs, we procure, supply, sell, and invest in processing, functional trading, parts production and service businesses for iron and steel products, both in Japan and in various overseas regions.

  • Koichi Fujita Managing Officer, Chief Operating Officer<br>of Iron & Steel Products Business Unit

    Koichi Fujita Managing Officer,
    Chief Operating Officer
    of Iron & Steel Products Business Unit

Business Environment

  • Slowdown in growth in global steel production, including China and Japan. Local production for local consumption in emerging countries
  • Needs are becoming more sophisticated for materials, especially in next-generation mobility (lighter and stronger materials)
  • Readjustment of steel production, processing and supply chains in response to low-carbon and circular economy

Progress under Previous Medium-term Management Plan (top) and Targets in Medium-term Management Plan 2023 (bottom)

  • Repositioned within steel product value chain, streamlined and optimized businesses. Still need to maximize the value of investment projects
  • A professional group leveraging the power of steel and other materials to create products and services that anticipate industry challenges and potential needs of customers. Work to develop and improve the value of businesses in terms of both investment and trading in the four domains of mobility, infrastructure, energy, and logistics, based on the themes of next-generation mobility, energy solutions, circular economy, and digital economy

Individual Strategies

Area Our Approach
Mobility

We contribute to the development and manufacture of key parts for next-generation mobility. We aim to maximize enterprise value of Gestamp Automoción S.A. through initiatives to increase return on investment and deeper involvement in management, while working to strengthen peripheral trading business and implement new ­initiatives for next-generation businesses.

Infrastructure

We intend to strengthen and expand inspection, maintenance and repair (IMR) businesses in the Electrical Arc Furnace, infrastructure processing, steel logistics and scrap businesses, and extend the operating life of infrastructure.

Energy

We contribute to energy solutions through the stable supply of energy and the renewable energy & energy conservation businesses. We also pursue highly functional trading in the oil and gas field, and will establish a business foundation in the renewable energy sector centered on GRI Renewable Industries, S.L. and GEG Holdings Limited.

Logistics

We are taking initiatives to expand the value at NIPPON STEEL TRADING CORPORATION, and to launch a digital platform business.

Impact from COVID-19 and Response Policies

  • Impact materialized with weaker demand for steel products; lower operating rates at affiliated companies as economic activity stalled.
  • Pace of recovery in economic activity varies by region, but we already started to streamline businesses, including cost reductions.

Vision

Vision

Contribute to the Development and Manufacture of Key Parts for Next-Generation Mobility

Contribute to the Development and Manufacture of Key Parts for Next-Generation Mobility

Major Subsidiaries & Associated Companies

Mitsui & Co. Steel Ltd.
Businesses Sales, export, import of steel products
Ownership
Interest (%)
Var.
Annual
Earnings
(¥ billion)
18/3   6.1
19/3   4.1
20/3   3.8
NIPPON STEEL TRADING CORPORATION
Businesses Sales, export and import of steel products
Ownership
Interest (%)
19.9
Annual
Earnings
(¥ billion)
18/3   ---
19/3   6.9
20/3   4.5
Gestamp companies
Businesses Manufacture of automotive components
Ownership
Interest (%)
Var.
Annual
Earnings
(¥ billion)
18/3   3.9
19/3   2.3
20/3   2.4
GRI Renewable Industries
Businesses Manufacture of wind turbine towers and flanges
Ownership
Interest (%)
25.0
Annual
Earnings
(¥ billion)
18/3   (0.1)
19/3   (2.4)
20/3   (0.2)
Game Changer Holdings Inc.
Businesses Investment in steel processing company
Ownership
Interest (%)
100.0
Annual
Earnings
(¥ billion)
18/3   6.7
19/3   3.9
20/3   1.4