Nippon Steel and Bluescope Steel Form Strategic Sheet Steel Alliance

Nippon Steel Corporation and BlueScope Steel Limited (hereinafter "BlueScope Steel") have agreed to form an alliance in the fabrication, marketing and sale of SuperDyma, one of Nippon Steel's strategic steel sheet products, by making use of BlueScope Steel's fabrication facilities, in the markets for construction materials mainly in Asian countries.

In the domestic construction market, Nippon Steel has already organized a network of fabricators of steel sheets for construction uses, called the "SuperDyma Club", with successful results including a project in relation to the Central Japan International Airport. Strenuous approaches have also been made in overseas markets, such as participation in CONBEX2004, an exhibition of construction materials in Thailand. The alliance with BlueScope Steel is intended to further enhance penetration of SuperDyma into overseas construction markets by the active use of BlueScope Steel's fabrication and sales network.

BlueScope Steel owns metallic-coating and prepainting facilities in 5 locations and facilities for fabrication of construction materials in 19 locations (through BlueScope Lysaght) in Asia. It also has an extensive sales and service network with over 100 locations across Asia. The company functions as a fully integrated provider of construction materials, from the fabrication of steel sheets to the design of buildings and installation. In April 2004, moreover, BlueScope Steel acquired Butler Manufacturing Company, an American manufacturer of steel construction materials, thus gaining possession of Butler's operations in China (consisting of fabrication facilities in two locations, and sales and service offices in 21 locations). BlueScope Steel views SuperDyma as a product complementary to its own steel product branded as Zincalume R, a Zn-55%Al sheet steel, and plans to conduct market development activities for SuperDyma together with its own products.

Nippon Steel has been selling SuperDyma widely in both domestic and overseas market for use in home appliances and others in addition to construction. Recently, in particular, development of new uses is being vigorously pursued in overseas markets. Nippon Steel will continue its sales activities in these other areas as before, independent of the above alliance with BlueScope Steel.

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