Diversification
Nippon Steel expanded or further established itself in semiconductors, electronics, a theme park called Space World, software, and even human resources products. The company bucked seven struggling but profitable years when it returned to loss in 1993. Again, thousands of employees would be transferred to new operations. Due to cost-cutting, the company returned to health in 1995. However, Nippon Steel reported earnings in 1999 suffered from an overwhelming charge needed to cover pension costs, a problem not uncommon for shrinking industrial giants. 2002 and 2003 would be back-to-back loss years, but robust demand for steel in the People's Republic of China returned the company to profitability. (However, Nippon Steel had an operating profit for 2002 and 2003. The losses were made of extraordinary losses because of reevaluation of real estate and securities of the company among others). Following a triple merger of Sumitomo Corporation, Kinzoku Steel Corporation (Sumikin Bussan), and the existing Nippon Steel, NSSC was formed as these company's conglomerate Stainless Steel division.
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