Primetals Technologies, where 51 percent is owned by Mitsubishi Heavy Industries, was a venture formed in January 2015 by merging both companies’ units. It will speed up integration as it reviews overlapping production and engineering sites, according to executive vice president Kazuaki Kimura.

Slower economic growth in China, which is the maker of half the world’s steel, has cut domestic demand, forcing mills to export their surplus and reducing global profits for steel. The global market for steel equipment dropped to 2 trillion yen (US$18.8 billion) in the year ended March, from 2.4 trillion yen a year earlier, according to Mitsubishi Heavy Industries.

Primetals is one of the top three producers of steel-making equipment with a global share of 11 percent. The Primetals’ integration will involve about 1,000 job losses, cutting the workforce to around 7,000.

While Mitsubishi Heavy Industries expects mid and long-term growth in the steel-making equipment market, it’s unable to foresee when the rebound might occur, Mr Kazuaki said. “Steel is the foundation of industry and undeveloped and developing countries will need the metal. We’ll wait for a recovery of the market.”