Mar 1 2006
Basic Agreement Between Nippon Steel Corporation and Sumitomo Metal Industries, Ltd. Concerning Integration of Structural Steel Sheet Businesses and Road and Civil Engineering Materials Businesses
As part of their cooperative measures, Nippon Steel Corporation (principal place of business: Chiyoda-ku, Tokyo; President: Akio Mimura) ("Nippon Steel") and Sumitomo Metal Industries, Ltd. (principal place of business: Chuo-ku, Osaka; President: Hiroshi Tomono) ("Sumitomo Metals") have basically agreed to begin studies on the integration of their subsidiaries, Nittetsu Steel Sheet Corporation, Nippon Steel Metal Products Co., Ltd., and Sumitomo Metal Steel Products, Inc. (corporate profiles of the above companies are provided in the attachment), with the objective of further strengthening the competitiveness of structural steel sheet businesses and road and civil engineering materials businesses.
Following are the business scope and the direction of intended studies:
- Structural steel sheet business: to prepare for future increase in competition, the structural steel sheet businesses of Nittetsu Steel Sheet Corporation and Sumitomo Metal Steel Products, Inc. will be integrated to effectively utilize both companies' production capacities and to build an efficient production and sales structure, with the aim of attaining the strongest position in the industry; and
- Road and civil engineering materials business: with the expected continuance of sluggish demand, the road and civil engineering materials businesses of Nippon Steel Metal Products Co., Ltd. and Sumitomo Metal Steel Products, Inc. will be integrated to build an efficient production and sales structure through rationalization, integration of production and other efforts, with the aim of further strengthening earnings base and competitiveness.
A Business Integration Study Committee (provisional name) will be set up to conduct studies on specific aspects of the business integrations, with the target of signing formal agreements in May 2006 and establishing integrated companies in October 2006.