Description
SWOT ANALYSIS OF SUMITOMO METAL INDUSTRIES

Sumitomo Metal Industries

Parent Company

Sumitomo Metal Industries, Ltd.

Category

Iron & Steel

Sector

Industrial products

Tagline/ Slogan

Contributing to society through steelmaking

The third largest manufacturers of seamless pipes in Japan & one of the USP largest manufacturers of Seamless Pipes & Tubes

STP

Segment

Pipe & tube, Steel sheet, Plate & Structural steel

Major oil companies, national oil companies, electric power companies, Target Group automotive and construction equipment manufacturers

Positioning

The Best Steelmaker with World-Leading Capabilities

SWOT Analysis

1. Integration with Nippon Steel 2. High-end seamless pipes that can withstand severe development environments of oil and natural gas in the world 3. Have the world-class technological capabilities and product line-up 4. Railway wheels and axles have a 100% share in Japan and are expanding globally 5. Automotive crankshafts are manufactured at four sites worldwide Strength with its global market share approaching 10%

1. Retirement benefit liabilities Weakness 2. Limited market share growth and less international presence

1. Expand the business in overseas growth markets 2. Enhance technological superiority 3. Attain cost competitiveness so as to be superior to rivals in the world Opportunity 4. Seek greater synergies between steel and non-steel businesses

1. Overseas market environment is tough because of the ongoing weakness in the steel sheet market 2. Floods in Thailand, resulting in a decline in export volume Threats 3. Post integration management problems with Nippon Steel

Competition

1. JFE Holdings 2. Kobe Steel Ltd Competitors 3. POSCO



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