Sanyo Special Steel, Japan's No.1 maker of bearing steel and a world leader in steel cleanliness, will be absorbed by Nippon Steel and dissolved on April 1, 2027. The model for the famous novel The Grand Family, it once suffered postwar Japan's largest bankruptcy. Why give up the name now? A look at China's steel glut and an unexpected Swedish thread.
Japan's steel industry accounts for about 40% of the country's industrial CO2 emissions. The government now aims to create a green steel market exceeding 3 million tons annually by the early 2030s, combining hydrogen reduction, electric arc furnaces, and CCUS. Here's how Japan plans to standardize carbon footprint metrics and respond to the EU's CBAM.
Nippon Steel is raising approximately $8.5 billion through Japan's largest-ever convertible bond issuance ($3.6B) and JBIC loans. This massive fundraising secures financing for its $14.9B U.S. Steel acquisition and a $39B five-year investment plan. We examine the implications for global steel consolidation, comparisons with ArcelorMittal, and the unprecedented "golden share" arrangement with the Trump administration.