Kawasaki Steel Corp. said Wednesday it will spin off its bridge and steel construction division into a separate company in April.
The decision follows plans by Kawasaki Steel, Japan's third-largest steelmaker, and NKK Corp., the second largest, to reorganize their operations into separate entities under JFE Holdings Inc., to be established by the two firms on Sept. 27, Kawasaki Steel said.
The new company will be a wholly owned subsidiary of JFE Steel Corp. and will be set up under JFE Holdings.
Kawasaki Steel's bridge and steel construction division had sales of 31.1 billion yen for the 2000 business year, slipping to 30.4 billion yen in 2001, Kawasaki Steel said.
Kawasaki Steel said it expects to report sales of 30.4 billion yen for this fiscal year.