Nippon Steel Corporation

▪ Japanese corporation

Japanese  Shin Nippon Seitetsu Kk,  

      Japanese corporation created by the 1970 merger of Yawata Iron & Steel Co., Ltd., and Fuji Iron & Steel Co., Ltd. It ranks among the world's largest steel corporations. Its headquarters are in Tokyo, and it has several offices overseas.

      In 1896 the Japanese government established a steelmaking bureau, and five years later the Imperial Japanese Government Steel Works began operation at Yawata (now part of Kita-Kyūshū) in northern Kyushu. In the following three decades several private steelmakers were also founded. In 1934 the imperial Diet passed legislation creating the state-operated Japan Iron & Steel Co., Ltd., which incorporated the Yawata works and six private steelmakers (Wanishi, Kamaishi, Fuji, Kyushu, Toyo, and Mitsubishi). By the end of 1939 this giant trust had developed several large, modern, integrated steelworks. During World War II, however, bombings and loss of raw materials put most of the works out of operation. The disintegration was completed in 1950, when, under pressure from the Allied occupation authority, the trust was dissolved. Its assets were distributed among four new private companies, including Yawata and Fuji.

      The Japanese economy prospered greatly following the outbreak of the Korean War in 1950, and world prosperity in the 1950s and '60s sparked an enormous demand for inexpensive steel. To meet this demand, Yawata and Fuji launched successive modernization programs that resulted in large-scale integrated mills, more efficient operations, and improvement of raw-material treatment technology. The merger of Yawata and Fuji in 1970, forming Nippon Steel Corporation, further strengthened their corporate resources. At its peak in the early 1970s, Nippon Steel had a steelmaking capacity of 47 million tons per year; it passed the United States Steel Corporation in 1975 to become the world's largest steelmaker. Declining worldwide demand for steel and other changes in the global economy forced the company to cut back its steelmaking capacity in the 1980s and to diversify its operations, however.

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