Nippon Steel Indicates EU Financial Crisis Not to Solve Early

Nippon Steel’s chairman Akio Mimura, told current financial crisis in Europe might take ten years of a long time for recovery if the problem is caused by internal structure of European Union, not by aftereffects of Lehman Shock, at a current press meeting in Tokyo. The U.S.A. and European countries cannot carry out fiscal actions immediately while Chinese government is forced to continue very cautious control of domestic economic growth and prevention of inflation, Mr. Mimura said, and then global economy would endure long time to solve current hard conditions.

As for historically strong yen trend, Mr. Mimura suggested Japanese enterprises should brush up themselves into global players with international competitiveness when strong yen trend is likely to continue as long as economic growth maintains weak in Europe and the U.S.A. He indicated Japanese makers should reduce yen based cost more by optimization of domestic productive capacities and utilize investment chances at overseas under strong yen trend. He referred to the merger plan between Nippon Steel and Sumitomo Metal Industries and emphasized they expect much synergy by early scale expansion.

Mr. Mimura also explained about Nippon Steel’s recent overseas activities. In Brazil, Nippon Steel increased its stakes in Usiminas in cooperation with Ternium Group. As for automotive steel sheet, Nippon Steel Group’s overseas production rate will reach 60% when TENIGAL in Mexico commences operation. Overseas productive rate of tin plate will reach 50% by a joint business with Wuhan Iron & Steel. He also suggested possibility of another integrated steel plant construction at overseas. He told Nippon Steel has cautiously inspected material supply condition, regional steel demand, infrastructure supports by local governments and other necessary terms for an integrated steel plant, involving possibility of new joint businesses.