Nisshin Steel Strengthens Cooperation with Nippon Metal Industry for Stainless Steel

A Japanese major steel maker, Nisshin Steel announced on Friday it took the share of Nippon Metal Industry at 5 million stocks in about 1.3 billion yen from Metal One and raised its investment ratio to 5.36% of the controlling shares from 2.54%, and became the biggest shareholder of Nippon Metal Industry. Nippon Metal Industry got the share of Nisshin Steel of 1.5 million stocks at about 600 million yen, and raised 0.5% of the controlling shares from 0.35%, too. Both companies build up the cooperation. Metal One reduced the controlling shares of Nippon Metal Industry to 3.60% from 6.42%, and kept the second shareholder of Nippon Metal Industry. Both companies reached an agreement for the cooperation of the stainless steel business in September, 2004. First of all, Nisshin Steel relegated the hot rolling of the stainless slab to Nippon Metal Industry. Both companies invested at 1 billion yen each other in March 2005. The 3 companies conformed to their speculation that Metal One advances the review of the capital holdings, Nisshin Steel and Nippon Metal Industry aim the deepening of the cooperation. Nisshin Steel explained that it didn’t think additional share purchase and aimed at the extensive cooperation, not aiming at the defense for the unfriendly takeover. Nisshin Steel and Nippon Metal Industry think the extensive cooperation including such as the production relations and technology exchanges. Metal One thinks that the firm will build up the cold rolled stainless sheets business through group coil centers, Stainless One which is invested by Nisshin Steel and Metal One or Sus-Tech which is invested by Nippon Metal Industry, etc.