Progress in Tie-Up Measures by Nippon Steel, Sumitomo Metals and Kobe Steel, and Agreement on Further Enhancement of Cooperation.Tokyo, Japan, Mar 29, 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) Newswire) - Nippon Steel Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 5401) Sumitomo Metal Industries Sumitomo Metal Industries, Ltd. (住友金属工業株式会社 , Ltd. (TSE: 5405) and Kobe Steel Kobe Steel, Ltd. (株式会社神戸製鋼所 , Ltd. (TSE: 5406) have been steadily implementing tie-up cooperative measures, and since the announcement of March 2005 on enhancement of cooperation, have also been conducting joint studies, in addition to studies carried out individually by each company, for measures needed to effectively respond to changes in the capital market. In order to continuously enjoy benefits from further enhancement of cooperation, the three companies have signed a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. ("MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. "), which ensures the process for the three companies to cooperatively study the impacts on the strategic alliance and countermeasures That form of military science that, by the employment of devices and/or techniques, has as its objective the impairment of the operational effectiveness of enemy activity. See also electronic warfare. in the event that an unsolicited offer is made to one of the three companies. The MOU also stipulates, among other things, that studies should continue on measures to prepare for potential unsolicited offers. Since March 2005, in addition to measures taken in the past, the three companies have been steadily implementing cooperative measures and studies as follows: a. Since April 2005, Nippon Steel and Kobe Steel have been supplying hot-rolled steel coils to Sumitomo Metals respectively, and Kobe Steel has been supplying hot-rolled titanium sheet for Sumitomo Metals. b. With respect to joint use of iron- and steelmaking facilities of Sumitomo Metals, Sumitomo Metals has already started supplying steel slabs to Nippon Steel. Similar supply to Kobe Steel is expected to start in the near future. Gradual expansion in quantity and scope of such transaction is intended, including in the area of high-grade steel that is steadily increasing in demand. (In June 2005, Nippon Steel and Kobe Steel made 10% (3,400 million yen) and 2% (700 million yen) capital contributions in East Asia East Asia A region of Asia coextensive with the Far East. East Asian adj. & n. United Steel Corporation, respectively.) The above cooperative relationship in steel production greatly contributes to each company building an efficient production structure. In addition, the three companies have agreed to the following matters and are proceeding with the discussion and implementation of specific measures: c. Activities for mutual licensing of technologies aimed to strengthen cost competitiveness and to improve technology of each of the companies in the field of ironmaking, within the framework of joint studies and mutual licensing of technologies mostly related to upstream processes. d. Specific activities to cut procurement costs of materials at each of the companies. Furthermore, Nippon Steel and Sumitomo Metals are jointly pressing on with the following activities: e. As part of the cooperation in the field of environment and recycling, Nippon Steel will pre-treat waste plastics and Sumitomo Metals will burn them in its coke ovens. (The activities are to be implemented in the first half of 2006FY.) f. Joint scheme for system back-up in case of disaster. g. Integration of cast rolls businesses by the two companies' subsidiaries. h. Studies on integration of structural steel sheet businesses and road and civil engineering materials businesses by the two companies' subsidiaries. At the same time, Nippon Steel and Kobe Steel are jointly pressing on with the following activities: i. Mutual cooperation in the fields of environment and recycling. j. Supply of mold pig iron pig iron: see iron. pig iron Crude iron obtained directly from the blast furnace and cast in molds (see cast iron). The crude ingots, called pigs, are then remelted along with scrap and alloying elements and recast into molds to produce from Kobe Steel to Nippon Steel in response to Nippon Steel's plan on relining of blast furnaces blast furnace, structure used chiefly in smelting. The principle involved in this means of extracting metals is that of the reduction of the ores by the action of carbon monoxide, i.e., the removal of oxygen from the metal oxide in order to obtain the metal. . For greater smoothness and efficiency in studying and carrying out these tie-up cooperative measures, the three companies have purchased the shares of each other. As a result, Nippon Steel now owns 240,826,000 ordinary shares (5.01%) of Sumitomo Metals; Sumitomo Metals owns 123,512,000 ordinary shares (1.81%) of Nippon Steel; Nippon Steel owns 63,975,000 ordinary shares (2.05%) of Kobe Steel; Kobe Steel owns 28,017,000 ordinary shares (0.41%) of Nippon Steel; Sumitomo Metals owns 63,975,000 ordinary shares (2.05%) of Kobe Steel; and Kobe Steel owns 82,184,000 ordinary shares (1.71%) of Sumitomo Metals. Considering that the smooth and steady enhancement of the tripartite TRIPARTITE. Consisting of three parts, as a deed tripartite, between A of the first part, B of the second part, and C of the third part. and bipartite BIPARTITE. Of two parts. This term is used in conveyancing as, this indenture bipartite, between A, of the one part, and B, of the other part. But when there are only two parties, it is not necessary to use this word. tie-up cooperative measures are very important in maintaining and augmenting the corporate value of each of the three companies, and also in view of the changing environment surrounding M&A activities, if one of the three companies receives an unsolicited proposal, material impacts are expected on the other two companies. The MOU ensures the procedure for the mutual cooperation under such a situation. About Kobe Steel, Ltd. Kobe Steel, Ltd. (TSE: 5406)(OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : KBSTF) is one of Japan's leading steelmakers and producers of aluminum and copper products. Other businesses include welding welding, process for joining separate pieces of metal in a continuous metallic bond. Cold-pressure welding is accomplished by the application of high pressure at room temperature; forge welding (forging) is done by means of hammering, with the addition of heat. consumables, machinery, and construction equipment. With an extensive R&D menu, Kobe Steel conducts research on coatings and materials design. More information is available at: www.kobelco.co.jp About Nippon Steel Corporation Nippon Steel Corporation (TSE: 5401) is one of the largest manufacturer and marketer of steel products in the world. The company is expanding into new fields such as electronics, new materials and urban development. Operations are carried out through the Steelmaking/Steel Fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. Division, Engineering/Construction Division, Urban Development Division, Chemicals/Nonferrous Materials Division, and Electronics/Information Systems Division. For more information, please visit www.nsc.co.jp. About Sumitomo Metal Industries Limited Sumitomo Metal Industries, Ltd. (TSE: 5405) was established in 1949 and is a leading diversified manufacturer of steel products and a distinguished supplier of construction, plant and system engineering services. The company's principal activities are carried out through the Steel Products Division, Engineering Division, Electronics and Information Services See Information Systems. Division. For more nformation, please visit www.sumitomometals.co.jp. Source: Kobe Steel, Ltd. Contact: Nippon Steel Public Relations Center, General Administration Div. +81-3-3275-5021, 5022 Sumitomo Metals Public Relations Group, Public Relations & IR Dept. +81-3-4416-6115 Kobe Steel Gary Tsuchida Publicity Group Tel: +81-3-5739-6010 E-mail: www-admin@kobelco.co.jp Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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