Nippon Steel Pushes Merger Cost Cuts as Asia Mill Deferred

Nippon Steel & Sumitomo Metal Corp., the world’s biggest steelmaker by market value, will accelerate its cost-cutting targets and defer a decision to add capacity with an overseas integrated steel mill.

Overcapacity in China has led to excess supply in Southeast Asia, the steelmaker’s target export market, and the glut may not be resolved for years, Chief Executive Officer Shoji Muneoka said in an interview in Tokyo. The company will put profit before volumes by reorganizing its 16 existing steelworks in Japan, he said.