The Wall Street Journal-20080118-Nippon Steel Names President
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Nippon Steel Names President
TOKYO -- Nippon Steel Corp. picked a new president to lead the world's No. 2 steelmaker as it steps up overseas business expansion.
Executive Vice President Shoji Muneoka, who oversees marketing and some international operations, will succeed Akio Mimura on April 1, Nippon Steel said. Mr. Mimura will become chairman.
Mr. Muneoka will be responsible for competing against powerful rivals in the international market, a key area for the Japanese company now that its traditional business of selling steel to domestic manufacturers looks to have limited growth potential.
Nippon Steel is looking overseas, especially in emerging economies in Asia, where steel consumption has been steadily increasing. Japanese steelmakers also want to shift more production overseas because of pressure to reduce carbon-dioxide emissions domestically.
Nippon Steel has embarked on several major international projects. Last month, it agreed with ArcelorMittal and China's Baosteel Group Co. to raise output at their Chinese joint venture. The company has also recently received a request from Thai government officials to build a plant in Thailand. In India, Nippon Steel is in talks with Tata Steel Ltd. about jointly making steel sheets for cars.
"Now that our customers, such as auto makers, are accelerating their move to operate overseas, we need to respond with such steps as overseas capital investments and soft alliances," or friendly tie-ups without large capital participation, Mr. Muneoka said. "We won't seek a hostile TOB," or a tender offer bid, to acquire another company for a quick expansion.
