Alliance between Nippon Steel and Kobe Steel

Nippon Steel Corporation
Kobe Steel， Ltd.

TOKYO - Nippon Steel Corporation (place of business: Chiyoda-ku， Tokyo； President: Akira Chihaya) and Kobe Steel， Ltd. (place of business: Chuo-ku， Kobe City； President: Koshi Mizukoshi) have announced today that they will pursue collaboration to improve their competitiveness. The two companies will set up a cooperation promotion committee (provisionally named) consisting of members from both companies to explore specific areas for alliance.

Anticipating future changes in steel demand and growing international competition， this collaboration aims to provide both Nippon Steel and Kobe Steel with benefits through implementation of the alliance.

Areas for alliance that the two companies have agreed to study follow below. Other areas could be added if future discussions determine they would be advantageous to both companies.


Areas of the Alliance

1.Mutual support in steelmaking
1.1Nippon Steel and Kobe Steel plan to cooperate in the efficient operation of their steelmaking processes， including times of blast furnace refurbishment and equipment repair.

1.2 Both companies intend to cooperate in supplying semifinished steel products， required from the shutdown of Nakayama Steel Works， Ltd.’s blast furnaces (place of business: Taisho-ku， Osaka City； President: Masahisa Kozaki).

2. Collaboration in cost reduction
2.1 Distribution of steel products
The two companies will pursue collaboration in the effective utilization of product distribution infrastructure， including transit bases， ships and trucks.



2.2 Raw materials procurement
The two companies intend to cooperate in raw materials procurement and mutual uses of storage of inventories.

2.3 Cooperation between nearby places of operation
The two companies plan to cooperate in procuring supplies and in maintaining equipment between their nearby places of operation.

2.4 Cooperation between group companies
Subsidiaries and affiliates of Nippon Steel and Kobe Steel will pursue cooperation to improve their operations in such areas as the effective utilization of equipment and cooperation based on geographical location.

Through the study and execution of cooperation in these areas， Nippon Steel and Kobe Steel remain competitors as independent companies， and at the same time build cooperative relationships that strengthen their competitive edge.

For more information， please contact:

Nippon Steel Corporation
Public Relations Center
Corporate Secretariat Div.
Tel +81 (0)3 3275-5023

Kobe Steel， Ltd.
Gary Tsuchida
Publicity Group
9-12 Kita-Shinagawa 5-chome
Shinagawa-ku， Tokyo 141-8688
Japan
Tel +81 (0)3 5739-6010
Fax +81 (03) 5739-5971
Email www-admin＠kobelco.co.jp
Web site www.kobelco.co.jp/indexe.htm