Hitachi Metals and Daido Steel Form Comprehensive Business Alliance.Tokyo, Japan, Mar 6, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) ) - Hitachi Metals, Ltd. and Daido Steel Co., Ltd. today reached an agreement to form a comprehensive business alliance primarily in the specialty steel field. Both Hitachi Metals and Daido Steel are engaged in the manufacture of specialty steel, a product whose role in underpinning un·der·pin·ning n. 1. Material or masonry used to support a structure, such as a wall. 2. A support or foundation. Often used in the plural. 3. Informal The human legs. Often used in the plural. industrial infrastructure necessitates a high degree of reliability. The two companies have formed this business alliance in order to respond to increasing international competition, a result of both the globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation of business and increasingly stringent customer demands for high quality products, both in Japan and abroad. The companies see as essential the concentration of management resources on maintaining and bringing manufacturing skill and capability - the foundation of the business - to a higher level. They aim to mutually enhance business efficiency through effective utilization of both companies' management resources, and to further strengthen their competitive position in the international arena. The business alliance will entail: 1. Mutual original equipment manufacturing (OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and ) supply by efficiently utilizing upstream production facilities 2. Joint development, with the goal of enhancing manufacturing technologies 3. Stable and efficient procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of raw materials, resources and equipment Additional areas and items may be added to the scope of the alliance in the future, in the event that there is mutual potential for benefit and the companies are able to agree on terms. To deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. mutual trust and cooperation, and to facilitate a smooth alliance, the two companies have agreed to purchase each other's shares at an amount equal to 1% of total shares in the first stage of the alliance. Copyright [c] 2006 Japan Corporate News Network. All rights reserved. |
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