Commencement of SuperDyma™ production in Thailand

Apr. 25, 2014

Nippon Steel and Sumitomo Metal Corporation

Commencement of SuperDyma™ production in Thailand
- Enhancing capability of the No.2 Metal Coating Line
of NS BlueScope (Thailand) -


NS BlueScope Coated Products, which is a 50/50 joint venture of Nippon Steel & Sumitomo Metal Corporation (President:Kosei Shindo, hereinafter “NSSMC” Group) and BlueScope Steel Limited, Australia (CEO: Paul O’Malley, hereinafter “BSL”) focusing on coated products business (hot-dip galvanized steel sheets, painted steel sheets and roll-formed products) in Southeast Asia and the U.S., has decided to commence production of SuperDyma™, which is one of NSSMC’s strategic products, in Thailand by enhancing capability of the No.2 Metal Coating Line of NS BlueScope (Thailand) Limited, a subsidiary of NS BlueScope Coated Products. This is the first overseas production of SuperDyma™ by NSSMC Group.

SuperDyma™, one of NSSMC’s unique, strategic products, is a hot-dip alloy coated steel sheet with a coating composition consisting of zinc as the main substrate in combination with aluminum (about 11%), magnesium (about 3%) and a trace amount of silicon. SuperDyma™ possesses excellent corrosion resistance, compared with conventional hot-dip galvanized steel sheet, which will contribute to life cycle cost reduction for our customers by enabling a long service life of the steel. Through the production of SuperDyma™ in Thailand, NSSMC further strengthens the responsiveness to the needs of our customers in the building and construction market and home appliances market, and aims to provide more value-added products, services and solutions globally.

Outline of NS BlueScope Coated Products
 Name :  NS BlueScope Coated Products
 Equity ratios :  NSSMC Group 50% and BSL 50%
 Purpose of business:  Manufacture and sale of hot-dip galvanized steel sheet,
 painted steel sheet and roll-formed building products
 Main productive capacities :  Cold-rolling capacity: 800,000 tons/year
 Hot-dip galvanizing capacity : 1,400,000 tons/year
 Painting capacity : 500,000 tons/year
 Roll-forming bases : 24 bases
 Operating bases :  30 bases in 7 countries
 Employees :  About 3,000
 Chairman :  Mr. Shinya Higuchi
 (Representative Director and Executive Vice President of
  NSSMC)
 CEO :  Mr. Sanjay Dayal (Divisional Chief Executive of BSL)

Outline of NS BlueScope (Thailand) Limited
 Purpose of business :  Manufacture and sale of hot-dip galvanized steel sheet
 and painted steel sheet
 Main productive capacities :  Cold-rolling capacity: 360,000 tons/year
 Hot-dip galvanizing capacity : 320,000 tons/year (2 lines)
 Painting capacity : 80,000 tons/year
 Location :  Rayong, Thailand

<Outline of enhancing capability of No.2 Metal Coating Line>
 CAPEX :  About 33 million AUD
 Content: 
 Enhancing capability of existing No.2 Metal Coating Line
 to produce SuperDyma™
 Start of
 SuperDyma™ production :
 3Q 2015 (scheduled)
        

<NS BlueScope (Thailand) Limited>



<No.2 Metal Coating Line>



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