Notice of Transfer of Share in a Subsidiary

Sep. 3, 2014

Nippon Steel & Sumitomo Metal Corporation

Nippon Steel & Sumitomo Metal Corporation (Representative Director and President: Kosei Shindo, “NSSMC”), regarding the transfer of the entire shares of capital stock in NIPPON STEEL & SUMIKIN Electronics Devices Inc. (Representative Director & President: Hidemasa Nakajima, “NIPPON STEEL & SUMIKIN Electronics Devices”), a 100% subsidiary manufacturing and selling ceramics for the electronic industry, to NGK INSULATORS, LTD. (Representative Director and President: Taku Oshima, “NGK”), has reached agreement with NGK today, as follows:

NIPPON STEEL & SUMIKIN Electronics Devices started operation in Mine City, Yamaguchi Prefecture in 1970, has manufactured and sold high-performance ceramics packages for semiconductors and electronic parts, utilizing electrical characteristics of ceramics, and, given high customer confidence, has steadily evolved. For electronic parts and components, because demand for much further miniaturization and higher performance are predicted, it will be the first requisite of business growth to possess greater materials-development and layer-building technology.

Under such circumstances, NGK, a leading manufacturer of electronic insulators and ceramic products for automotive exhaust purification, offered NSSMC with a proposal for acquisition of stock in NIPPON STEEL & SUMIKIN Electronics Devices and NSSMC entered into negotiations. As a result, concluding that the conduct of business in cooperation with NGK, which possesses high technological strengths, competent people, equipment and other management resources in the area of ceramic materials will highly contribute to the business development of NIPPON STEEL & SUMIKIN Electronics Devices, NSSMC has agreed on terms and conditions with NGK and decided this share transfer.

Working toward the goal of being “the world’s leading steelmaker with comprehensive strengths”, NSSMC will continue its quest for enhanced competitiveness and further development of the whole group by an optimum and efficient utilization of the managerial resources.

1. Schedules for share transfer
September 3, 2014:    Signing of the share transfer agreement.
January 5, 2015: Transfer of the share (tentative).

Note: Upon closing of the above share transfer, the company name, NIPPON STEEL & SUMIKIN Electronics Devices Inc., will be changed.
    (At this moment, the new company name is not decided.)

2. Profile of NIPPON STEEL & SUMIKIN Electronics Devices Inc.
Location:    2701-1, Higashi-bun, Omine-cho, Mine City, Yamaguchi Prefecture
Representative:    Hidemasa Nakajima, Representative Director and President
Establishment:    March 1991
Capital:    JPY 3,450 million
Consolidated sales:    JPY 24,500 million (March 2014 term)
Business:    Manufacture and sale of ceramics packages for semiconductors and ceramic electronic parts
Employees:    500 persons, non-consolidated; 2,314 persons, consolidated (as of the end of March 2014)
Production bases:    Mine City, Yamaguchi Prefecture; Amagasaki City, Hyogo Prefecture; Penang, Malaysia; and Suzhou, China.

3. Profile of NGK
Location:    2-56, Suda-cho, Mizuho-ku, Nagoya City, Aichi Prefecture
Representative:    Taku Oshima, Representative Director and President
Establishment:    May 1919
Capital:    JPY 69,800 million-plus
Consolidated sales:    JPY 308,700 million (March 2014 term)    
Business:    Electric power-related business, ceramic business and electronic business.
Employees:    3,531 persons, severally; 13,210 persons, consolidated (as of the end of March 2014)


For inquiries, please contact:
Public Relations Center, General Administration Div.
Tel: +81-3-6867-2135, -2977