TOKYO: Japan's largest steelmaker, Nippon Steel Corp., has joined with Sumitomo Metal Corp. to form the world's second-biggest steel maker.
The newly formed entity, Nippon Steel & Sumitomo Metal Corp., said yesterday it aims to expand its global operations, especially in China, India and other emerging countries, where demand is expected to grow, while consolidating operations in the shrinking Japanese market.
NSSMC has an annual steel production capacity of about 50 million metric tons, a distant second behind Luxembourg-based ArcelorMittal SA.
The two companies formed an alliance in 2002, and say they aim to streamline operations to improve their competitiveness amid a shake-up of the global steel industry that has boosted rivals such as China's Baoshan Iron & Steel Corp.
The company says it aims to boost its annual output to as much as 70 million metric tons within the next five to 10 years.
Nippon Steel reported a net 87.5 billion yen ($1.1 billion) loss in the April-July quarter, which it mostly attributed to losses on investments in securities due to weakness in stock prices.
The company had a stock market value of about $23 billion at the time it announced it was taking over Sumitomo Metal, which was worth $12.5 billion.
It is the first takeover in Japan's steel industry since NKK and Kawasaki Steel joined forces in 2002 to create Japan's No. 2 steel maker, JFE Holdings Inc.
Nippon Steel & Sumitomo Metal's shares fell 1.25 percent to close at 158 yen ($2.02) yesterday in Tokyo.
Nippon Steel, Sumitomo Metal join hands
Nippon Steel, Sumitomo Metal join hands
Saudia adds 20 flights to Red Sea for Eid Al-Fitr holiday
RIYADH: Saudia has added 20 flights connecting Riyadh and Jeddah with the Red Sea Destination during Eid Al-Fitr holiday, increasing total operations on the routes to 44.
The expanded service comes through collaboration with the Saudi Tourism Authority and Red Sea Global as part of ongoing efforts to promote premier tourism destinations across the Kingdom.
According to a press release, the initiative aims to establish the destination as a world-class luxury tourism hub.
The Red Sea Destination is an ambitious luxury tourism project on Saudi Arabia’s west coast, developed by the Public Investment Fund’s Red Sea Global as part of Vision 2030.
Upon full completion in 2030, the regenerative tourism site will feature 50 resorts with 8,000 hotel rooms and over 1,000 residential properties across 22 islands and six inland locations, all powered entirely by renewable energy.
The press release states that passengers flying to and from the Red Sea will experience “Saudia’s integrated guest experience, including advanced AI-powered digital services for personalized travel planning, streamlined airport procedures, and an onboard experience reflecting Saudi hospitality alongside a wide range of entertainment for guests of all ages.”
The partnership represents a long-term strategic collaboration between Saudia and the Saudi Tourism Authority to strengthen tourism initiatives through expanded flight connectivity, increased seat capacity, and distinctive travel experiences that reflect the Kingdom’s cultural character.
These efforts support Saudi Arabia’s national tourism goal of attracting 150 million visitors by 2030, the statement noted.
Saudia’s expanding fleet continues to drive growth across its global network, which currently serves more than 100 destinations across four continents, including all 26 domestic airports in Saudi Arabia.
The airline plans to introduce additional international routes as part of its strategy to connect the world with the Kingdom. This expansion will be supported by the delivery of 116 new aircraft, joining the existing fleet of 149 planes.
The airline is a member of the International Air Transport Association, the Arab Air Carriers Organization, and has been part of the SkyTeam alliance since 2012.
