4 ms·

is the reason for the sale mostly due to corp management profit min/maxing then?

by caycep 3y ago

verdverm 3y ago
Their fiduciary duty is to the investors first afaiui, perhaps they saw that selling to someone who can run the company better as a net benefit overall? I've heard Japanese steel is pretty great, or at least a common sentiment
- FredPret 3y ago
  Japan supplied sub-par metal for decades and lied about it. Aluminum, copper and steel. Something to think about next time you get anywhere near a car, train, airplane, skyscraper, or bridge. https://money.cnn.com/2017/10/16/news/companies/kobe-steel-scandal-what-we-know/index.html https://money.cnn.com/2017/10/16/news/companies/kobe-steel-s...
  - verdverm 3y ago
    I hoped someone would have additional data to add, thanks! Is a scandal at one company evidence for the entire industry in a country? Is there similar information about other Japanese companies? What about the industry at large? The prevailing sentiment is that Chinese steel has similar issues.
    - graphe 3y ago
      It is when it's as big as Rockefeller oil. It's like finding out TSMC makes chips that degrade suddenly.
    - FredPret 3y ago
      Good questions - I certainly hope not!
    - fomine3 3y ago
      NS faked too https://www.asahi.com/ajw/articles/14617459 https://www.asahi.com/ajw/articles/14617459
  - riversflow 3y ago
    As someone who was in the Aluminum business during that time, this is a lot more complicated than it might appear. There was an absolutely insane amount of fraud being committed in the industrial aluminum biz during this time, here’s an article[1], but a lot of my experience isn’t really documented online or has been lost. What made this really troublesome was that ingots aren’t really sold direct to customers, so often times you have a contractor or sub contractor buying extrusions ($xxxxx)from a megacorp like SAPA(an extruder) who in turn is buying from a metal market($M+). The extruders doesn’t want to deal with material defects from Aluminum that was supposed to be to spec, and their customers can’t really play hardball as the industry is pretty niche-extrusion presses are capital intensive and require a fair amount of sophistication to operate. They were probably being compelled to do that because of the vast amounts of fraud committed by Chinese Aluminum producers. The purity issue was so bad my anodizing shop started recommending our customers demand mil certs from a reputable manufacturer, like Alcoa or Kaiser, and then specifically clarifying to the extruder that they intended to anodize it; being a chemical process anodizing is very dependent on the metal’s makeup and the extruder knows this. [1] https://www.reuters.com/article/us-usa-china-fraud-idUSKCN1UQ238/ https://www.reuters.com/article/us-usa-china-fraud-idUSKCN1U...
  - mitthrowaway2 3y ago
    That's a different company.

is the reason for the sale mostly due to corp management profit min/maxing then?

by caycep 3y ago

is the reason for the sale mostly due to corp management profit min/maxing then?

Their fiduciary duty is to the investors first afaiui, perhaps they saw that selling to someone who can run the company better as a net benefit overall? I've heard Japanese steel is pretty great, or at least a common sentiment

FredPret 3y ago
Japan supplied sub-par metal for decades and lied about it. Aluminum, copper and steel. Something to think about next time you get anywhere near a car, train, airplane, skyscraper, or bridge. https://money.cnn.com/2017/10/16/news/companies/kobe-steel-scandal-what-we-know/index.html https://money.cnn.com/2017/10/16/news/companies/kobe-steel-s...
- verdverm 3y ago
  I hoped someone would have additional data to add, thanks! Is a scandal at one company evidence for the entire industry in a country? Is there similar information about other Japanese companies? What about the industry at large? The prevailing sentiment is that Chinese steel has similar issues.
  - graphe 3y ago
    It is when it's as big as Rockefeller oil. It's like finding out TSMC makes chips that degrade suddenly.
  - FredPret 3y ago
    Good questions - I certainly hope not!
  - fomine3 3y ago
    NS faked too https://www.asahi.com/ajw/articles/14617459 https://www.asahi.com/ajw/articles/14617459
- riversflow 3y ago
  As someone who was in the Aluminum business during that time, this is a lot more complicated than it might appear. There was an absolutely insane amount of fraud being committed in the industrial aluminum biz during this time, here’s an article[1], but a lot of my experience isn’t really documented online or has been lost. What made this really troublesome was that ingots aren’t really sold direct to customers, so often times you have a contractor or sub contractor buying extrusions ($xxxxx)from a megacorp like SAPA(an extruder) who in turn is buying from a metal market($M+). The extruders doesn’t want to deal with material defects from Aluminum that was supposed to be to spec, and their customers can’t really play hardball as the industry is pretty niche-extrusion presses are capital intensive and require a fair amount of sophistication to operate. They were probably being compelled to do that because of the vast amounts of fraud committed by Chinese Aluminum producers. The purity issue was so bad my anodizing shop started recommending our customers demand mil certs from a reputable manufacturer, like Alcoa or Kaiser, and then specifically clarifying to the extruder that they intended to anodize it; being a chemical process anodizing is very dependent on the metal’s makeup and the extruder knows this. [1] https://www.reuters.com/article/us-usa-china-fraud-idUSKCN1UQ238/ https://www.reuters.com/article/us-usa-china-fraud-idUSKCN1U...
- mitthrowaway2 3y ago
  That's a different company.