Steel merger may not lead to higher prices - Mr Toyoda

Tuesday, 08 Feb 2011

Bloomberg quoted Mr Shuhei Toyoda president of Toyota Boshoku Corporation as saying that the planned merger of Nippon Steel Corporation and Sumitomo Metal Industries Limited may not lead to higher prices.
Mr Toyoda spoke to reporters in Toyota City after a factory tour. Toyota Boshoku, which makes car interior parts, is 39% owned by Toyota Motor Corporation.
On the merger's impact on steel prices, Mr Toyoda said that "I don't think the merger was intended to result in higher prices."
On the need for steelmakers to move production overseas, he added that "Japanese carmakers definitely need high quality steel overseas. Until now, they've had to spend money to ship from Japan or buy cheaper and lower quality steel locally. The Japanese steel industry operates very domestically."(sourced:bloomberg)