OSAKA STEEL CO.,LTD. (5449) Stock Price

Osaka Steel operates primarily in the steel industry. The company manufactures and sells steel products including shaped steel, rod steel, and flat steel, as well as steel ingots and processed steel products. Through these offerings, the company contributes to diverse industries such as construction and manufacturing.

The parent company, Nippon Steel Corporation, manufactures and sells various steel products and supports Osaka Steel's operations. Nippon Steel strengthens its competitive position in global markets through the supply of steel products both domestically and internationally.

Tokyo Steel Corporation, a consolidated subsidiary of Osaka Steel, manufactures and sells shaped steel, steel ingots, and processed steel products. This strengthens Osaka Steel's product lineup and meets the diverse needs of customers.

Additionally, Osaka Shin Transport Corporation and West Steel Logistics Corporation handle the transportation and in-plant operations of steel materials. This enables efficient distribution of products and allows for prompt supply to customers.

Furthermore, PT. KRAKATAU OSAKA STEEL manufactures and sells steel products, strengthening the company's presence in the Indonesian market. Through this operation, Osaka Steel is expanding its business in the Asia region.

Osaka Steel has formulated a medium-term management plan targeting fiscal year 2027 to achieve sustainable growth. The plan prioritizes revenue improvement and capital efficiency optimization, with the goal of enhancing ROE. Specifically, the company aims to strengthen its competitive position through reinforcement of its business foundation domestically and internationally, as well as cost reduction initiatives.

Domestically, the company is implementing a strategy to build customer trust by leveraging high-quality products and rapid delivery capabilities in response to sluggish demand in the construction sector. Additionally, the company is strengthening sales coordination in eastern Japan and expanding its product supply system. At the Sakai plant, the introduction of energy-efficient electric furnaces aims to reduce CO2 emissions and improve cost competitiveness.

Internationally, the company is focusing on business improvement in the Indonesian market. The company is pursuing profitability of its local subsidiary through enhanced manufacturing-sales coordination and sales channel expansion. While considering the possibility of business withdrawal, the company aims to maintain business value.

As part of capital efficiency initiatives, the company is strengthening shareholder returns. The company plans to implement shareholder returns of up to 30 billion yen over the next three years, targeting a dividend payout ratio of 30%. The company will also work to improve the ratio of shares in circulation through open market repurchases and cancellation of treasury stock.

The company places significant emphasis on sustainability initiatives. It aims to reduce CO2 emissions by 46% compared to fiscal year 2013 by fiscal year 2030, and achieve carbon neutrality by fiscal year 2050. Through strengthening human capital and promoting digital transformation, the company seeks to improve employee productivity and operational efficiency.