Kobe Steel : Announcement on cancellation of planned share transfer of consolidated subsidi
December 24, 2020 at 02:46 am EST
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Kobe Steel, Ltd.
Kobe Steel, Ltd. announces today that it has decided to cancel the transfer of a portion of the issued shares it holds in its consolidated subsidiary Kobelco & Materials Copper Tube Co., Ltd. (KMCT) to CTJ Holdings2, Ltd.*1)
Kobe Steel strived to implement the share transfer as stated in the Announcement on Change in Consolidated Subsidiary (share transfer) as of September 27, 2019, despite subsequent changes*2) in the execution date due to the impact of the novel coronavirus (COVID-19) outbreak; however, the company has finally decided to cancel the planned share transfer*3) for the following reason.
1. Reason for the cancellation
After considerable discussion with Japan Industrial Partners, Inc., Kobe Steel has decided to cancel the planned share transfer because it was deemed difficult to implement the transfer as the outlook for financial, economic, and other business conditions became unclear in the face of changes in the environment due to the COVID-19 outbreak and other factors.
2. Future outlook
Although the share transfer has been canceled, KMCT and Daishin P&T Co., Ltd. (a subsidiary of CTJ Holdings2, Ltd.) will consider collaboration in the copper tube business. Specifically, Daishin P&T plans to transfer part of its copper tube business at its Amagasaki Plant to KMCT's Hatano Plant. We will also consider and implement other measures to enhance the competitiveness of both companies, including our overseas subsidiaries.
The cancellation of the share transfer is anticipated to have an insignificant impact on Kobe Steel's consolidated business results.
February 21, 2020Announcement on change of share transfer execution date of consolidated subsidiaryMarch 31, 2020Change in scheduled execution date for share transfer of consolidated subsidiaryJune 17, 2020Change in scheduled execution date for share transfer of consolidated subsidiary
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Kobelco - Kobe Steel Ltd. published this content on 24 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 December 2020 07:46:01 UTC
Kobe Steel, Ltd. specializes in manufacturing and marketing of steel and metallurgical products. The group is also developing production of construction and industrial machines activity. Net sales break down by activity as follows:
- sale of steel and aluminum products (42.3%): special steel wires, stainless tubes, rolled steel products, steel strips, aluminum plates and sheets, aluminum alloy products, building materials, etc.;
- manufacturing of construction machines (17.8%): cranes, hydraulic excavators, mini excavators and wheeled loaders;
- sales of advanced materials (15.6%): copper foil for semiconductors, copper tubes for air conditioners, aluminum extrusions, aluminum alloy products, iron powder, etc.;
- manufacturing of industrial machines (7.8%): compressors, high pressure machines, heat pumps, nuclear plants equipments, etc.;
- engineering services (6.4%);
- electric power production (5.3%);
- sale of welding materials and equipments (3.6%);
- other (1.2%): primarily sale of electronic equipments and real estate development.
KOBE STEEL, LTD. 
