Alliances with Steelmakers

Alliances with Domestic Steelmakers

Former Nippon Steel, Former Sumitomo Metals, and Kobe Steel (up to the time Nippon Steel & Sumitomo Metal Corporation (NSSMC) was formed)

Dec. 2001

Nippon Steel Corporation (NSC) and Kobe Steel began alliance for strengthening each other’s competitiveness (complementing of iron- and steelmaking materials and cost reduction)
Feb. 2002

NSC and Sumitomo Metal Industries (SMI) began alliance for strengthening each other’s competitiveness (cooperation in iron- and steelmaking materials and downstream processes, cooperation in the stainless steel business, and cost reduction)
Jul. 2002

NSC and SMI integrated their welding-materials business (establishment of Nippon Steel & Sumikin Welding Co., Ltd.)
Nov. 2002

NSC and SMI began cooperation for hot rolled steel sheets, strengthened the alliance, and agreed on mutual capital subscription (of about ¥5 billion each)
NSC and Kobe Steel strengthened cooperation, and agreed on mutual capital subscription (of about ¥3 billion each)
Sep. 2003

NSC and Kobe Steel integrated their plate fusion-cutting business (establishment of Nittetsu Shinko Shearing)
Oct. 2003

NSC and SMI integrated their stainless-steel business (establishment of Nippon Steel & Sumikin Stainless Steel Corp.)
Jan. 2005

NSC, SMI, Sumitomo Pipe & Tube Co., Ltd., and Sumitomo Corporation began alliance in the automotive steel tube business in China (start of commercial production by Guangzhou You-Ri Automotive Parts Co., Ltd.)
Mar. 2005

NSC, SMI, and Kobe Steel began studying to deepen their cooperation and to mutually acquire each other’s shares
Apr. 2005

NSC and Kobe Steel began supplying hot rolled steel sheets to SMI
Jun. 2005

NSC and Kobe Steel subscribed part of the capital of East Asia United Steel Corporation (10% and 2%, respectively)
Joint use of the iron- and steelmaking facilities of Wakayama Works of Sumitomo Metals (start of slab supply to Nippon Steel)

Dec. 2005

NSC, SMI, and Kobe Steel additionally cross-purchased each other’s shares on the back of expanded and enhanced cooperation

NSC → SMI	2.55%→5.01%
SMI → NSC	0.52%→1.81%
NSC → Kobe Steel	1.80%→2.05%
Kobe Steel → NSC	0.29%→0.41%
SMI → Kobe Steel	1.80%→2.05%
Kobe Steel → SMI	1.52%→1.71%

Mar. 2006

NSC, SMI, and Kobe Steel agreed to deepen their cooperation (joint studies on deepening the cooperation and how to cope with a takeover bid)
Apr. 2006

NSC and SMI jointly undertook their cast-steel rolling-mill roll business (establishment of Nippon Steel & Sumikin Rolls Corporation)
Dec. 2006

The Nippon Steel Group and the Sumitomo Metals Group integrated their structural steel sheet business, and their road and civil engineering business (establishment of Nippon Steel & Sumikin Coated Sheet Corporation and Nippon Steel & Sumikin Metal Products Co., Ltd.)
Oct. 2007
NSC, SMI, and Kobe Steel began study of deepening and expanding their cooperation
- NSC and SMI to more effectively utilize the expanded iron- and steelmaking capacity of SMI’s Wakayama works.
- NSC and SMI to secure high-grade steel sheet supply capacity and to jointly deal with SMI’s Naoetsu operation.
- NSC and Kobe Steel to cooperate in the environmental and recycling areas and to exchange iron-making technology.

Dec. 2007

NSC, SMI, and Kobe Steel additionally cross-purchased each other’s shares on the back of expanded and enhanced cooperation

NSC → SMI	5.01%→9.4%
SMI → NSC	1.81%→4.2%
NSC → Kobe Steel	2.05%→3.4%
Kobe Steel → NSC	0.41%→0.8%
SMI → Kobe Steel	2.05%→3.4%
Kobe Steel → SMI	1.71%→2.3%

Apr. 2008

SMI began consigning production of stainless steel boiler tubes to Kobe Special Tube Co., Ltd.
Oct. 2008

NSC and Kobe Steel undertook the business of steel dust recycling and production and utilization of directly-reduced iron on a joint basis (establishment of Nittetsu Shinko Metal Refine Co., Ltd.)
Jul. 2009

The Nippon Steel group and the Sumitomo Metals group integrated their arc-welded stainless steel pipe and tube business (establishment of Sumikin & Nippon Steel Stainless Steel Pipe Co., Ltd.)

Oct. 2012

NSC and SMI integrated their business and formed NSSMC

NSSMC → Kobe Steel	2.9%
Kobe Steel → NSSMC	0.7%

Nisshin Steel

May. 2000

Mutual supply of stainless steel hot rolled materials (chromium: Nippon Steel to Nisshin, nickel: Nisshin to Nippon Steel)
Mar. 2017

Nisshin Steel was acquired and made into a subsidiary. Aims to create synergies by bringing together the management resources of both groups and to promote alliance
NSSMC’s ownership: 51.0%
Jan. 2019

Nisshin Steel was made into a wholly owned
Apr. 2019

Integration of stainless steel sheet business of NSSMC, Nisshin Steel, and Nippon Steel & Sumikin Stainless Steel Corporation
Apr. 2019

Integration of welded stainless steel pipe & tube business of NSSMC, Nisshin Steel, Nippon Steel & Sumikin Pipe, Nippon Steel & Sumikin Stainless Steel Pipe, and Nisshin Stainless Steel Tubing
Apr. 2020

Merged with Nippon Steel

Sanyo Special Steel

Feb. 2006

Alliance for strengthening each other’s competitiveness (mutual commissioning of production, cost reduction, and joint R&D) Sanyo Special Steel became an equity-method affiliate of Nippon Steel
Mar. 2019

NSSMC made Sanyo Special Steel a subsidiary. Sanyo Special Steel acquired all shares of Ovako AB from NSSMC and made Ovako a wholly-owned subsidiary
Nippon Steel’s ownership: 51%

Mitsubishi Steel Mfg.

Apr. 1994

Mutual toll production with Mitsubishi Steel Muroran Inc.
Jul. 2005

Purchase of a shut-down electric furnace of Mitsubishi Steel and re-start of its operation at Nippon Steel's Muroran Works
Oct. 2017

NSSMC increase volume in outsourced manufacturing of steel billets to Mitsubishi Steel Muroran Inc.
Nippon Steel’s ownership: 1.4%

Aichi Steel

Nov. 2000

Cooperation in automotive special steel bar & wire rods (strengthening competitiveness on production and cost, and joint R&D)
Nippon Steel’s ownership: 7.7%

Godo Steel

Jun. 2007

Alliance for strengthening each other’s competitiveness (commissioning of production, effective utilization of infrastructure of Godo Steel) Godo Steel became an equity-method affiliate of Nippon Steel
Nippon Steel’s ownership: 15.0%

Topy Industries

Sep. 2008

Alliance for strengthening each other’s competitiveness
Oct. 2008

Topy Industries became an equity-method affiliate of Nippon Steel
Nippon Steel’s ownership: 20.0%

Alliances with Overseas Steelmakers

ArcelorMittal

Mar. 1990

Start of operation of I/N Tek, a joint venture with Inland Steel* for toll processing of cold rolled steel sheets (Nippon Steel 40%, Inland Steel 60%)
Oct. 1991

Start of operation of I/N Kote, a joint venture with Inland Steel for the manufacture and sale of coated steel sheets (Nippon Steel 50%, Inland Steel 50%)
Jan. 2001

Global strategic alliance agreement with Usinor* (furthering business cooperation in the automotive sheet steel area, license agreements for the existing technologies, joint R&D, etc.)
Apr. 2002

Technical cooperation arrangements made for automotive steel sheet with Arcelor and Tata Steel
Oct. 2003

Deepened the alliance with the Ispat group in North America (improvement of the high-grade steel sheet supply system for Japanese automotive makers in North America)
Jul. 2007

Memorandum of understanding concerning a joint venture in North America and a strategic alliance agreement
Apr. 2008

Agreement on running a joint venture in North America and revision of the strategic alliance agreement (installation of a new hot-dip galvanizing line for automotive sheets at I/N Kote)
Dec. 2008

Agreement on deferral of installation of a new hot-dip galvanizing line at I/N Kote
Feb. 2014

Joint acquisition of ex. ThyssenKrupp Steel USA, LLC and established AM/NS Calvert LLC
Dec. 2019

Joint acquisition of ex. Essar Steel India Limited and established AM/NS India Limited
Dec. 2020

ArcelorMittal S.A. sold ArcelorMittal USA Holdings II(including I/N Tek and I/N Kote) to Cleveland-Cliffs Inc. Nippon Steel transferred its partnership interests in I/N Tek and I/N Kote to ArcelorMittal S.A. in line with the sale of ArcelorMittal USA Holdings II by ArcelorMittal S.A.

*

Inland Steel became Ispat Inland in July 1998, and then Mittal Steel USA in May 2005.
Usinor became Arcelor in February 2002. TOB for Arcelor by Mittal Steel was completed in July 2006. Integration of Arcelor and Mittal Steel was completed in July 2007.

POSCO

Dec. 1998

Mutual acquisition of stocks at the money values equal to those of the purchase of government-released securities attendant on the privatization of POSCO

Nippon Steel → POSCO	0.65%
POSCO → Nippon Steel	0.24%

Aug. 2000

Strategic Alliance Agreement and mutual capital subscriptions

Nippon Steel → POSCO	about 3%
POSCO → Nippon Steel	a little over 2%

Oct. 2006

Enhancement of strategic alliance and additional cross-purchase of shares

Mutual supply of semi-finished products and joint work on dry-type dust recycling

Nippon Steel → POSCO	additional stock acquisition of about 2%
POSCO → Nippon Steel	stock acquisition in approximate equal monetary value

Jan. 2008

Establishment of POSCO-NIPPON STEEL RHF Joint Venture, Co., Ltd. (PNR), a joint venture concerning direct-reduction iron supply and dry-dust recycling (Nippon Steel 30%, POSCO 70%)
Oct. 2010

Joint participation in Mozambique Revuboe coal mine for co-development
Mar. 2011

Joint participation in Brazilian Niobium company, CBMM, as a Japanese and Korean consortium

Vallourec Group

1976

Signed a license agreement on VAM^®, for premium joints to connect seamless pipes (In 1985, an R&D agreement was made)
1984

Started a joint venture to manufacture and service premium joint threading in the U.S.A. Subsequently similar ventures were started in Indonesia, Singapore, Vietnam, and China
Jul. 2007

Established Vallourec & Sumitomo Tubos do Brasil Ltda.（VSB）, a joint venture with Vallourec to manufacture seamless pipe in Brazil
Feb. 2009

Agreed on mutual equity investments (Completed acquisition of equities in the first half of fiscal 2009)
Sep. 2011

VSB started commercial operation
Feb. 2016
Agreed on enhancement of strategic partnership
- Strengthening of the VAM^® Premium Connection
  - The acceleration of product development / industrialization, and customer services as the newly expanded scope of collaboration for VAM^®.
- Enhanced joint operation of the seamless pipe business in Brazil
  - Integrating Vallourec Tubos do Brasil S.A. (“VBR”) and VSB.
- Equity investment in vallourec
  - Increasing NSSMC's shareholding ratio to 15%.
    - ※
      
      Vallourec issued new shares to its employees in December 2016, resulting in changing NSSMC's shareholding ratio
Oct. 2016

VBR and VSB merged to become a new company Vallourec Soluções Tubulares do Brasil S.A. (“VSB”).
Mar. 2021

Completed the transfer of all shares owned by NSC in VSB to Vallourec
Jun. 2021

Vallourec has implemented its financial restructuring program, including a new Rights Issue of EUR 300 million. NSC has subscribed to the new sharesissued by Vallourec through the Rights Issue for an amount of EUR 35 million.
Jul. 2021

Completed the transfer of all shares owned by NSC in VAM USA, the joint venture with Vallourec to manufacture and service premium joint threading in the U.S.A., to Vallourec.
Dec. 2022

Completed the transfer of all shares owned by NSC in Vallourec in bulk off the market.

China Steel Corporation

Apr. 2002

Agreed on stable supply of slab
May 2003

Signed a joint venture agreement for upstream operation at Wakayama Steel
Jul. 2003

Established East Asia United Steel Corporation
Nov. 2003

Established Sumikin Iron & Steel Corporation (Completed the joint venture framework for upstream operations)
Spring of 2005

Expanded supply of slab to 1.8 million tons per year
May 2007

The cumulative shipment of slab reached 5 million tons
Aug. 2007

China Steel Group made capital investment in Thai Sumilox Co., Ltd.
Mar. 2008

Made capital investment in CSGT Metals Vietnam Joint Stock Company (CSMV)
Aug. 2008

Concluded agreement to establish China Steel Sumikin Vietnam Joint Stock Company (CSVC), a steel sheet joint venture in Vietnam
May 2009

Established CSVC, a steel sheet joint venture company in Vietnam
Apr. 2013

CSVC started operation

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