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Nippon Steel, Chubu Plate Steel in Strategic Alliance.

Tokyo, Japan, Feb 2, 2007 - (JCN) - Nippon Steel Corporation and Chubu Plate Steel Co., Ltd. announced on January 30 that they have agreed to pursue strategic alliance for enhancing their respective competitiveness. A Joint Study Committee will be established by both companies to explore specific measures.

Anticipating future changes in steel demand and growing international competition, this collaboration aims to provide the companies with respective benefits through building thier cooperative relationships that strengthen their respective competitive edge.

The two have agreed to study the effective utilization of each other's production facilities for consignment production, mutual cooperation for cost reduction in production, equipment repairs, procurement of raw materials, and distribution of products, and Nippon Steel's engineering of the infrastructure improvement of Chubu Plate Steel's rolling mill.

The two companies have also agreed that Nippon Steel will purchase up to approx. 5% of Chubu Steel's total issued shares through subscribing for shares that Chubu Steel is issuing on February 15 by a third party allotment for financing its rolling mill infrastructure improvement. This will facilitate smooth and efficient cooperation between both companies

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Publication:JCNN News Summaries
Date:Feb 4, 2007
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