NIPPON KOKAN STEEL AFFILIATES CONSIDERING MERGER
Toshin Steel Co Ltd <TOSS.T> and <Azuma
Steel Co Ltd>, affiliates of Nippon Kokan KK <NKKT.T>, are
considering a merger, company spokesmen said.
    Toshin Steel, owned 41.9 pct by Nippon Kokan, and Azuma
Steel, owned 41.3 pct by Nippon Kokan, are expected to decide
by the end of March, they said. Both firms have been struggling
with losses caused by the recession in the steel industry and
the yen's appreciation.
    Azuma Steel's current losses are estimated at 3.1 billion
yen in the year ending March 31 against a 6.99 billion loss a
year earlier, a spokesman said. The firm employs 1,100 workers
    Toshin Steel, with 1,700 workers, has given no forecast for
the year ending March 31.
    But industry sources said they expected the company to show
current losses of about five billion yen or more in 1986/87
compared with a 2.98 billion loss in 1985/86.
 REUTER
