New Year Message for 2026
Jan 05, 2026
Following is the New Year’s message that was delivered by NST President Nakamura at the Tokyo Head Office on January 5.
Happy New Year! Here at the start of 2026, I would like to extend my heartfelt New Year's greetings to NST Group employees in Japan and around the world.
Last year, we experienced ongoing instability, with disruptions to supply chains caused by the administration’s foreign and tariff policies in the United States, growing geopolitical risks brought about by wars and the tension between the U.S. and China, inflation at home and abroad, and a number of natural disasters. Our business environment, especially in the steel sector, also faced great challenges, as we saw contraction in domestic steel demand due to population decline and aging, intensified competition, and worsening overseas market conditions. Fiscal 2025 marks the final year of our current Medium-to-Long-Term Management Plan, but we entered the fourth quarter under severe circumstances as several negative factors overlapped. At present, we are implementing emergency profit improvement measures, and I ask for your continued dedication and efforts.
On the other hand, when we look back on the current Medium-to-Long-Term Management Plan, we have achieved record-high profits for four consecutive years since fiscal 2021, the first year of the plan, and, excluding one-off factors, we expect to post operating profit above 50 billion yen for the third consecutive year since fiscal 2023. By leveraging the strengths of our diversified portfolio across four different business domains, we have established a resilient earnings structure capable of consistently generating over 50 billion yen in operating profit regardless of the environment, and I express sincere appreciation for the tireless efforts of all Group employees.
We are now entering a new stage. Under the next Medium-to-Long-Term Management Plan, which will run through fiscal 2030, our basic concept is the realization of “Becoming a strong growth company that contributes to society, as the true core trading company of Nippon Steel Group,” with a target of elevating operating profit from the current 50 billion yen level to 60 billion yen. Toward 2030, even as we anticipate a tough environment—such as further decline in domestic steel consumption and intensifying competition—I am confident that we can achieve sustainable growth by implementing growth strategies, promoting human capital management, and driving operational reforms and greater efficiency in response to structural changes.
To achieve these goals, we will pursue sustainable profit growth through growth strategies such as thoroughly reinforcing the domestic business, expanding overseas and raw materials businesses, and developing new businesses related to SDGs. We will maximize synergies through strategic partnerships with Nippon Steel corporation by further reinforcing our collaboration, fulfilling our role as the true core trading company of Nippon Steel Group. At the same time, we will advance human capital management and operational reforms by securing and developing talent needed for growth, accelerating operational reforms and efficiency through AI and DX, and building a structure to enable sustainable growth. Finally, we are committed to enhancing ESG management to further enhance corporate value.
Fiscal 2026, as the starting year of the next Medium-to-Long-Term Management Plan, demands a strong first step from all divisions.
In the Steel Division, overseas demand in Asia is slowing, while production capacity at major mills is on an upward trend with the commissioning of new facilities, making it difficult to expect significant market improvement. Additionally, in China, domestic demand remains stagnant and crude steel output reductions remain uncertain, resulting in continued high levels of exports and little expectation for market recovery in the near term. Domestically, sluggish exports due to uncertain overseas trading conditions, declining capital investment, price escalation and labor shortages in both residential and non-residential construction, and slow automobile production have led to a continued decrease in domestic steel consumption—a 2% drop compared to the previous year. To overcome these challenging conditions, I ask that you actively pursue business investments based on the principle of local production for local consumption and promote business transformation, in response to ongoing global trade policies and the progression of regional economic blocs prompted by Chinese overproduction. With a focus on strategic regions for Nippon Steel corporation—Europe, the Americas, India, and ASEAN—please accelerate investment in management resources and growth strategies, and establish footholds in unexploited regions such as Africa and South America with tinplate business as a base. In Japan, thoroughly intensify efficiency both through structural reforms at coil centers and through operational efficiency realized with DX and AI. I further ask that you serve as a hub for collaboration among group companies to maximize, optimize, and streamline group-wide efforts. Please ensure that we capture the demand related to CO₂ emission reduction, further expand sales of carbon-neutral and high-performance products, and respond to labor shortages by expanding products and materials that contribute to labor savings and shorter construction periods, thereby further strengthening our supply chain functions.
In the Industrial Supply & Infrastructure Division, despite one-off valuation losses, core business performance has been robust, exceeding the targets set forth in the current Medium-to-Long-Term Management Plan. The division has also advanced the sale of the overseas GHS business, and has steadily reshaped its portfolio through initiatives such as investment in plant-derived biodiesel fuel business and acquisition of new sales agency rights in an industrial park in northern Vietnam. As a division with a wide-ranging business field, I expect you not only to strengthen existing businesses but also to generate new businesses that will become future profit pillars, while exerting enhanced synergies with other divisions.
In the Foodstuffs Division, please maintain your current strong performance and aim for a record-high profit in fiscal 2025. From fiscal 2026 onward, I request you continue to implement growth strategies steadily and further reinforce your business foundation so as to achieve sustainable growth. In particular, where you have already achieved successful results in business with major customers, please further advance cross-divisional sales sophistication and productivity, strengthen quality control to ensure food safety, and build even more robust relationships with business partners. Please also further promote integrated sales approaches with subsidiaries, as well as expansion of local transactions overseas. I look forward to seeing the division take on new challenges and aspire to new heights in the year ahead.
In the Textiles Division, fiscal 2026 marks the final year of the current business plan formulated at the launch of MN Inter-fashion and serves as an important milestone for formulating the next medium-term business plan. Performance has exceeded the current business plan’s targets due to portfolio enhancements and reduced fixed costs, but the business environment has changed significantly since the company’s inception—customer-driven direct trading, for example, has altered the business model. I ask you to thoroughly review the progress of growth strategies and synergies as set out in the current business plan, formulate the next medium-term plan for continued growth, and focus on strengthening your revenue base as you bring the current business plan to completion.
In the Corporate Planning & Administration Division, I ask you to ensure the firm implementation of both the growth strategy and fixed cost management under the next Medium-to-Long-Term Management Plan, by drawing up a fiscal 2026 budget based on strategic goals and concrete policies and accurately following up progress. You are also requested to further reinforce human resource development, optimize personnel allocation, and review HR systems to enable everyone to maximize their abilities. Please also spearhead major operational reforms to boost employee productivity and added value through process review and active use of AI.
At the core of all these initiatives must be unwavering commitment to our most critical priorities: Safety, Quality Control, and Compliance. Recently, though we have avoided serious accidents, the total number of incidents remains unchanged, and a significant number of quality issues continue to occur. In 2024, we issued a President’s Message to strengthen compliance and eliminate improper conduct, but have not yet achieved zero violations. In order to further strengthen our corporate foundation, I urge everyone to return to basics and raise the quality of all activities with a sense of ownership.
As I have repeatedly emphasized since assuming my position, our greatest asset as NST is our people—each and every one of you. I am convinced that creating an environment in which all of our more than 6,500 NST Group employees can fully realize their potential as professionals, and fostering a corporate culture linking individual growth to company growth, will be the driving force for further growth and development. We will not hesitate to invest in people—securing and cultivating talent for global expansion and sustainable growth.
Fiscal 2026 is expected to bring continued challenging business conditions, but it will also be a year to take on new challenges and reach for a new stage, building on our achievements thus far. Let us, as one NST Group, complete the current Medium-to-Long-Term Management Plan and advance together toward the goals of the next plan. I sincerely hope that 2026 will be a year of significant progress for the NST Group and a year of health and happiness for each of you and your families.