|
| Zhang Yuanrong (third left), vice president of China Minmetals Corp, and Moriji Kanada, president of Metal One, at the launch of the Minmetals Steel Wuhan Co Ltd in
December 2005. |
|
With consolidations and mergers now heading many a corporate agenda as the global credit crunch sees companies desperate for cost-cutting and new revenue streams, two Japanese metal manufacturers are claiming to be well ahead of the game.
Back in 2003, the Mitsubishi Corporation and the Nissho Iwai Corporation (now the Sojitz Corporation) agreed to merge their steel products divisions and created a new joint venture company, Metal One Corporation.
The two companies believed the merged operation would generate considerable cost savings and, in turn, provide greater flexibility and productivity to their combined client base.
Commenting on the success of the venture, Moriji Kanada, president of Metal One, said: "After initially setting up Metal One, we have spent the last five years modernizing and restructuring our steel distribution function and services. This has allowed us to generate $1 billion in new investments and enabled us to provide added-value across all of our activities.
"When we launched Metal One, our consolidated turnover was $16.4 billion. In 2008, it was nearly $35 billion. During this time we have been able to expand our business in Japan and overseas, as well as strengthening our core functions and services."
Metal One attributes much of its success to the worldwide surge in demand for steel, particularly from companies in China.
Metal One now has seven offices and 34 business subsidiaries in China.
These include not only a series of coil centers, but also a string of ancillary companies providing sales, processing and manufacturing services for a range of steel products.
In order to better meet the needs of construction machinery manufacturers, 2008 saw the company open steel processing plans in both Hangzhou and Suzhou. The two new launches were carried out in association with the Keiyo Blanking Kogyo Co Ltd of Japan.
As well as importing Japanese technology and know-how, Metal One has also been seeking strategic partnerships to allow it greater penetration into Chinese market.
The first fruit of this policy is Minmetals Steel Wuhan Co Ltd, a joint venture with the Chinese steel trading giant, Minmetals. Speaking after the announcement of its Chinese joint venture, Kanada said: "Our aim is to lead the world in terms of our innovative approach to steel distribution."
www.mtlo.co.jp
|