Nippon Steel Corporation and Mittal Steel will continue
their business partnership. This was decided at the first
top-level meeting between the companies since Mittal''s
takeover of Arcelor SA last month.
Mittal, CEO, Mittal Steel, and his Nippon Steel counterpart
Akio Mimura met in Kyoto for discussions on the relationship
between the two companies.
Steel has a five-year-old technology tie-up with Arcelor,
as well as a co-operative arrangement with Mittal Steel
in automotive steel sheet in the US.
also said that Mittal and Mimura have also agreed to consider
expanding their existing joint automotive steel business
in North America, most likely by opening a new mill to
Steel, the world''s No 3 steel maker, is currently way
down the production chart since Mittal''s takeover of Arcelor.
A combined Mittal-Arcelor has annual sales of about $72
billion against Nippon Steel''s sales of about $34 billion
Steel and its allies are planning to raise their combined
annual crude steel output to over 40-million tonnes by
the end of March 2009 amidst realignment and consolidation
in the industry. The Arcelor-Mittal alliance has taken
the heat out of Asian steel production, creating a company
with annual crude steel output of over 120 million tonnes.
Steel is also planning an alliance with Sumitomo Metal
Industries to boost output growth to an annual 18 per
cent in the next three years.
a Nihon Keizai Shimbun report said, Mitsui & Co has
announced the acquisition of ¥10-billion worth of
shares in Nippon Steel Corp from the market, raising its
interest in Japan''s largest steelmaker from 0.31 per cent
to 0.65 per cent. Mitsui, the newspaper said, is planning
to strengthen ties with the steelmaker as it expands its
steel product distribution business.
it said the transaction is also widely seen as part of
Nippon Steel''s efforts to secure stable shareholders to
ward off any potential takeover amidst global mergers