Sumitomo Metal Mining, Sumitomo Metals Raise Cross Shareholding

Sumitomo Metal Mining announced on Friday the firm purchased additional 19 million shares in the major nickel buyer of Sumitomo Metal Industries for 10 billion yen to secure stable buyer for expansion to annual 100,000 tonnes of nickel by 2013. Sumitomo Metals also purchased additional shares in Sumitomo Metal Mining for 10 billion yen to secure stable source of nickel to increase output of seamless pipe and stainless steel under growing demand. Sumitomo Metal Mining completed the purchase for additional 19.467 million shares in Sumitomo Metals on March 20 after the start in December 2006 holding total 30.48 million shares or 0.63% of Sumitomo Metals. Sumitomo Metals purchased additional 7.8 million share of Sumitomo Metal Mining for 10 billion yen holding total 1.36% of Sumitomo Metal Mining, which represents 10th largest shareholder. They are major nickel supplier and buyer each other. Sumitomo Metal Mining supplies electrolytic nickel to Sumitomo Metals as raw material of seamless pipe and ferronickel to Nippon Steel & Sumikin Stainless Steel as raw material of stainless steel. Nippon Steel & Sumikin Stainless Steel has 25% share in Hyuga Smelting, at which Sumitomo Metal Mining makes ferronickel. Sumitomo Metal Mining plans to expand the annual nickel production to 100,000 tonnes by 2013. The firm expands the electrolytic nickel output capacity to annual 65,000 tonnes at plant in Ehime from current 30,000 tonnes. The firm decided to improve the connection with stable buyers for the expansion. Sumitomo Metals also tries to secure stable supply source of nickel under tight supply.