Nippon Steel, Sumitomo Metals, Kobe Steel to Expand Tie-up

Nippon Steel, Sumitomo Metal Industries and Kobe Steel announced on Tuesday they expand the strategic partnership. They start further cooperation including more joint utilization of steel source from Wakayama works of Sumitomo Metals, more sheet rolling tie-up between Nippon Steel and Sumitomo Metals, technology exchange of dust recycling and iron making between Nippon Steel and Kobe Steel and tie-up for boiler tube high tensile bolt business between Sumitomo Metals and Kobe Steel. They also study for further cross shareholding for additional cooperation. Sumitomo Metals decided to build new no.2 blast furnace with 3,700 cubic meters of inner capacity at Wakayama works starting operation in 2012. The expansion increases the works’ raw steel output to 5 million tonnes from 4.3 million tonnes in 2009 after commissioning of new no.1 blast furnace with 3,700 cubic meters and from current 3.8 million tonnes. Sumitomo Metals plans to increase the slab supply to annual 1 million tonnes for Nippon Steel and Kobe Steel from Wakayama in and after 2009 compared with 400,000 tonnes supply now. With additional 700,000 tonnes of steel source in 2012, they start the study for best utilization. Nippon Steel increases the hot rolling production support for Sumitomo Metals with additional steel source from Wakayama. Nippon Steel also produces hot rolled stainless flat steel for Sumitomo Metals with nickel series stainless ingot from Sumitomo Metals Naoetsu. Nippon Steel and Kobe Steel will study potential joint venture for no.4 FASTMET dust recycling plant at Hirohata works of Nippon Steel. Sumitomo Metals could join the venture. Nippon Steel and Kobe Steel consider cross technology utilization for pellet and sinter production.