Nippon Steel and POSCO Continue Strategic Alliance

Nippon Steel renewed contract of strategic alliance with POSCO, which held ceremony at Inchon on November 5. Both companies joined hands on August 2000, which confirmed accomplishment of joint business, research & development, technology exchange, buying raw material for 10 years. Both companies plan to mull new collaborative project for environment, resource or efforts for global worming.

Both companies advanced joint research with wide range of theme, and applied for a patent at over 20. As for technology exchange, both companies is keeping pace cost reduction, improving productivity and reduction of environmental load for raw material, manufacture of pig iron or environment.

As for overseas business, both companies raised investment ratio of Siam United Steel (SUS), cold rolling mill in Thailand. Nippon Steel had a share of POSCO Vietnam, POSCO’s cold rolling mill in Vietnam.

As for raw material, both companies are negotiating with Vale, Brazilian major miner, and enhanced combination for joint investment for Namisa iron ore mine in Brazil, coal mines in Australia and Mozambique. POSCO started joint company of dust recycle using Nippon Steel’s technology in POSCO’s iron works in South Korea.

Nippon Steel raised equity stake of POSCO to over 5%, while POSCO raised equity stake of Nippon Steel to 3.5%. Both companies deepened exchange for accommodation of semi-finished steel with refinement of blast furnaces each other.