Signing the Global Strategic Alliance Agreement between Nippon Steel and Usinor

Nippon Steel Corporation (President： Akira Chihaya， NSC) and USINOR (President： Francis Mer， USINOR) have signed the Global Strategic Alliance Agreement， to develop cooperation in the steel business worldwide. Both companies， in the development of business activities mainly in Asia and in Europe， are facing the same and formidable challenge ： responding to a trend toward globalization among steel users， such as automotive manufacturers， packaging industry and stainless steel customers.

Thus， our two companies have concluded this Global Strategic Alliance Agreement in order to structure a mutual cooperation in various activities. The objective is to achieve greater customer satisfaction， more efficient operation and utilization of our respective corporate resources in steel sector， and high performing R&D. To reach these targets， our two companies will jointly work on cooperation projects in areas such as automotive sheet. We will enter into license arrangements concerning technologies already possessed and joint R&D endeavors. Moreover， we will study opportunities such as joint ventures and OEM production. We intend to develop similar cooperation with respect to steel for packaging and stainless steel. We will implement cooperation for purchasing and e-business and pay special joint attention to environmental issues related to our industry.

From now on， our two companies have established a steering committee composed of our respectively designated senior executives for studies on and development of specific themes for cooperation.

Both our companies must respond to our customers* moves toward globalization and world basis production of goods. Our customers also demand for ever lighter， stronger and better materials for environmental and safety considerations. To meet their legitimate requirements， we will reinforce worldwide connection with them so that we can better anticipate their needs and remain true solution providers for them.

To this end， our two companies have signed a specific agreement in the area of steel products for automotive use. Accordingly， we will now be able to cross-license each other existing products and to manufacture any jointly-developed new products. In this way， a better supply capability of high-grade products will be available. Both our companies will capitalize on each other*s technical advantages through cooperation， complementing， and sharing. Thus we will be able to respond to customers* demands for new product development even faster and better than ever. Attention will be paid to the area of world-car design， supply and production and of automotive sheets where many tasks remain to be undertaken regarding the level of globalization these customers have already achieved.

Our technical collaboration will tap each long accumulated know-how in varied and numerous areas， such as technical services， product transportation， delivery services and inventory control. It is our belief that combined with cutting-edge information technology， it will enable us both to make significant contributions to customers and manufacturers in many ways.

We are very confident that our two companies* agreement， aimed at establishing the best conditions to supply high-grade flat steel products， strengthening new-product development capabilities， and improving the ability of our two companies to make various improvement proposals will result into superior benefits to our customers.

Enquiries ： Public Relations Centre - Nippon Steel Corporation (Tel +81-3-3275-5021/5022)