Global Expansion of Valve Spring Wire Business by Nippon Steel Group

Suzuki Metal Industry, Co., Ltd.
Nippon Steel Corporation

Suzuki Metal Industry Co., Ltd. (“Suzuki Metal”), a key manufacturer of wires in the Nippon Steel Group which processes value-added special wire rod products of Nippon Steel Corporation (headquartered in Chiyoda-ku, Tokyo, President: Shoji Muneoka, “Nippon Steel”) is announcing today the acquisition of Haldex Garphyttan AB (headquartered in Sweden, “Garphyttan”) for the global expansion of valve spring wire business and to achieve further profit growth. As part of the finance for the acquisition, Nippon Steel will subscribe for Suzuki Metal’s new shares through a third party allotment. As a result, Suzuki Metal is expected to become a consolidated subsidiary of Nippon Steel.

Suzuki Metal, 35% of whose shares are currently held by Nippon Steel, is one of the leading producer of special wire products, mainly valve spring wire for automotives, processing and marketing their products made from wire rod supplied by Nippon Steel.

Suzuki Metal has entered into a definitive agreement with Haldex AB (headquartered in Sweden, “Haldex”), pursuant to which Suzuki Metal will acquire all issued and outstanding shares of a Haldex subsidiary, Garphyttan, a valve spring wire producer. By acquiring Garphyttan, the largest valve spring wire producer with production sites in Europe, North America and China, Suzuki Metal expects to realize profit growth by expanding its global business, improving technology and obtaining competitiveness as the world’s largest valve spring wire producer.

In addition, Suzuki Metal determined an issuance of shares through a third party allotment to Nippon Steel at today’s meeting of the Board of Directors. Nippon Steel decided to subscribe for all shares issued by Suzuki Metal, conditional upon, inter alia, the completion of the acquisition. Nippon Steel expects that Suzuki Metal will build a firm position as a global player of the Nippon Steel Group’s wire rod business by obtaining sites overseas and realizing synergies in R&D and technology through the acquisition.

(Company Overview)

Suzuki Metal Industry Co., Ltd
・Foundation : May 1, 1938
・Representative : Noboru Sugiura, President & Representative Director
・Location : Marunouchi Chuo Building, 9-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005 Japan
・Capital : JPY 1.9Bn, listed on the Second Section of Tokyo Stock Exchange
・Business: Production and sale of valve spring wire, piano wire, stainless wire, titanium wire, special wire products, etc.
・Financial Year-end : End of March
・Sales : Consolidated JPY 41.1Bn (FY2007)
・Ordinary Income : Consolidated JPY 1.9Bn (FY2007)
・Number of Employees : 811 (as of September 30, 2008)
・Major Shareholders : Nippon Steel Corporation, Metal One Corporation, Mitsui & Co., Ltd., Mizuho Corporate Bank, Ltd., and The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Haldex AB
・Foundation : 1960 (company website)
・Representative : Joakim Olsson, President and CEO
・Location : Headquartered in Stockholm, Sweden
・Capital : JPY 23.5Bn (FY2007), listed on Stockholm Stock Exchange
・Business : Production and sale of commercial vehicle systems, hydraulic systems, valve spring wire, traction systems, etc.
・Financial Year-end : End of December
・Sales : Consolidated JPY 137.3Bn (FY2007) (exchange rate: JPY17.3 /SEK)
・Ordinary Income : Consolidated JPY 3.8Bn (FY2007) (exchange rate: JPY17.3 /SEK)
・Number of Employees : 6,154 (as of September 30, 2008)

Haldex Garphyttan AB
・Foundation : 1906 (company website)
・Representative : Jan Pieters, Division Manager
・Location : Headquartered in Garphyttan, Orebro, Sweden
・Capital : JPY 260MM (FY2007)
・Business : Production and sale of valve spring wire, stainless wire, flat and shaped wire, valve spring etc.
・Financial Year-end : End of December
・Sales : Pro-forma JPY 19.3Bn (FY2007) (exchange rate: JPY17.3 /SEK)
・Ordinary Income : Pro-forma JPY 1.0Bn (FY2007) (exchange rate: JPY17.3 /SEK)
・Number of Employees : 471 (as of September 30, 2008)
・Shareholder : Haldex AB 100%

(Contact)
Suzuki Metal,
　Sales Administration 　 TEL: +81-3-3214-4131
　General Affairs TEL: +81-47-476-3111
Nippon Steel,
　Public Relations 　　　 TEL: +81-3-3275-5021