Word: yawata
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Dates: during 1960-1969
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Last week, encouraged by the government, the two offspring of the old Japan Steel Co. - Yawata Iron & Steel and Fuji Iron & Steel - agreed to get to gether again. Their merger marked a long stride toward the formation of giant companies in all major industries in Japan...
...Complaints. On June 1, with the approval of Japan's rather toothless antitrust watchdog, the Fair Trade Commission, Fuji and Yawata will form the New Japan Steel Co., the world's second largest steel company after U.S. Steel Corp. Last year the two partners produced 25 million tons v. U.S. Steel's 32 million; they had sales of $2.5 billion. Under the presidency of Yoshihiro Inayama, now the chief of Yawata, the new company will employ 80,000 people in ten huge, highly integrated mills throughout Japan...
...Fuji and Yawata together account for 34% of Japan's burgeoning steel production. They have no complaints about complying with conditions imposed by the Fair Trade Commission, and have reduced their share of the market in heavy rails, tinplate and foundry iron, in which they would otherwise clearly hold a monopolistic position. Significantly, Japan's four other major steel firms showed no real opposition to the merger. "The other steel companies have become strong enough to withstand any kind of competition," explained Hosai Hyuga, president of Sumitomo Metal Industries. Indeed, some competitors are counting on the trend...
Japan's two biggest steelmakers - Yawata Iron & Steel and Fuji Iron & Steel - are in the process of merging into a colossus that will produce some 22.3 million tons of steel a year and rank second in the world only to U.S. Steel (30.9 million tons). The automaking di vision of Mitsubishi Heavy Industries is being combined with the truck-making Isuzu Motors to form Japan's third largest automaker, after Toyota Motor Co. and Nissan Motor Co. Other mergers are afoot in petrochemicals, electric equipment, heavy machinery, banking and shipbuilding...
Some Japanese businesses say the rush of financially healthy companies toward new partners is the result of a "merger neurosis." Others think that it is not neurotic at all. "The time is ripe for mergers," argues Yawata President Yoshihiro Inayama, 64. "Intensification of international competition makes it imperative for Japanese firms to strengthen their internal structures...