Suzuki Metal Industry Becomes a Subsidiary of Nippon Steel through Nippon Steel’s Subscription for Its Shares

Nippon Steel Corporation (“Nippon Steel”) completed its payment today in connection with its subscription for new shares in Suzuki Metal Industry Co., Ltd. (“Suzuki Metal”) through a third party allotment, as announced on December 25, 2008. As a result, Suzuki Metal has become a subsidiary of Nippon Steel.

Suzuki Metal (Location: Chiyoda-ku, Tokyo, President: Noboru Sugiura), a key manufacturer of wires in the Nippon Steel Group which processes value-added special wire rod products of Nippon Steel, acquired former Haldex Garphyttan AB, now Suzuki Garphyttan AB (Location: Kingdom of Sweden) (“Garphyttan”), with the aim of expanding Suzuki Metal’s valve spring wire business globally and achieving further profit growth. Various processes relating to the acquisition were completed on June 1, 2009. Thereafter, Nippon Steel subscribed for new shares issued by Suzuki Metal through a third party allotment for the purpose of partially financing the acquisition and completed payment, as scheduled, on June 15. Consequently, the percentage of Suzuki Metal shares held by Nippon Steel rose from 35.90% to 66.59%, and Suzuki Metal became a consolidated subsidiary of Nippon Steel.

Many important customers of Suzuki Metal in the domestic automobile and electronics-related industries have secured their positions in the mature domestic market and are entering overseas markets in search of new growth opportunities. Securing global supply capability was, therefore, a significant and urgent management issue for Suzuki Metal. Suzuki Metal acquired Garphyttan on the belief that the integration of Suzuki Metal, with strong relationship with Japanese end users, and Garphyttan, the largest valve spring wire producer with bases in Europe, North America and China, was a precious opportunity to expand its business globally and benefit from long-term stable growth in the valve spring wire business. Suzuki Metal will, as the largest valve spring wire manufacturer in the world, aim to realize profit growth by expanding its global business, improving technology and maintaining competitiveness.

Nippon Steel will strive to build a firm position as a global player of the Nippon Steel Group’s high quality wire rod business by further strengthening its ties with Suzuki Metal, which has now become its consolidated subsidiary, and by providing support for Suzuki Metal’s global development and profit growth through the acquisition.

1.Outline of the Third Party Allotment
(1)Type of shares: common stock
(2)Number of shares: 25,500,000
(3)Price per share: \\135 per share
(4)Total amount paid: \\3,442,500,000
(5)Date of payment for the third party allotment: June 15, 2009

2.Overview of Suzuki Metal Industry Co., Ltd.
(1)Representative: Noboru Sugiura, President & Representative Director
(2)Location: Marunouchi Chuo Building, 9-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005
(3)Foundation: May 1, 1938
(4)Number of employees: 819 (as of December 31, 2008)
(5)Capital: \\1.9 billion (as of March 31, 2009)
(6)Businesses: production and sale of valve spring wire, piano wire, stainless steel wire, titanium wire, special wire products, etc.
(7)Sales: \\36.7 billion (on a consolidated basis for the year ended March 31, 2009)

3.Shares of and Voting Rights in Suzuki Metal held by Nippon Steel
Before the subscription: 9,966,000 shares (35.90%)
After the subscription: 35,466,000 shares (66.59%)

For further information, please contact:
Nippon Steel Corporation,
Public Relations Center
Tel: +81-3-3275-5021