Japan's Nippon Light Metal and Kobe Steel announced a basic agreement on June 15 to consolidate their domestic aluminum extrusion operations. The companies intend to finalize a definitive contract by November 2026, aiming to launch a joint holding company by April 2027. Nippon Light Metal will command a majority stake in the new entity.
The venture unites Nippon Light Metal’s processing technology and annual sales of 30,000 tons with Kobe Steel’s alloy expertise and 28,000-ton yearly sales from its Chofu Works.
This consolidation addresses declining order volumes that previously weakened Kobe Steel’s earnings. By merging asset divisions, the partners plan to optimize capital investments, lower operating expenses, and enhance aluminum scrap recycling.
Nippon Light Metal & Kobe Steel to integrate aluminum businesses
18 Jun 2026 16:37 reported by Joy Liu
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