NIPPON KOKAN STEEL AFFILIATES CONSIDERING MERGER

  Toshin Steel Co Ltd &lt;TOSS.T> and &lt;Azuma
  Steel Co Ltd>, affiliates of Nippon Kokan KK &lt;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.
  

