Japan’s largest steelmaker, Nippon Steel Corp., has joined with Sumitomo Metal Corp. to form the world’s second-biggest steel maker.

The newly formed entity, Nippon Steel & Sumitomo Metal Corp., said Monday it aims to expand its global operations, especially in China, India and other emerging countries, where demand is expected to grow, while consolidating operations in the shrinking Japanese market.

NSSMC has an annual steel production capacity of about 50 million metric tons, a distant second behind Luxembourg-based ArcelorMittal SA.

Japanese steel mills are struggling to compete amid a shake-up of the global steel industry. The two companies formed an alliance in 2002.

The company says it aims to boost its annual output to as much as 70 million metric tons within the next five to 10 years.