Nisshin Steel Buys Nippon Steel’s Shares Additionally

Nisshin Steel announced on Tuesday the firm purchased 10 million shares of Nippon Steel, which represent 0.15% of outstanding shares of Nippon Steel, for 5 billion yen additionally through market in second half of fiscal 2006 ended March 2007. Nisshin Steel increased the share in Nippon Steel to 0.54% from 0.39% or 27 million shares. The additional purchase is the part of strategy of Nisshin Steel to improve the partnership with Nippon Steel. Nippon Steel is the largest shareholder of Nisshin Steel with 9.2% share. With the higher share by Nisshin Steel, they expanded the cross shareholding. Nisshin Steel produces some nickel series stainless flat steel for Nippon Steel while Nippon Steel’s subsidiary, Nippon Steel & Sumikin Stainless Steel produces some chrome series stainless for Nisshin Steel. Nisshin Steel and Nippon Steel try to expand the partnership from current original equipment manufacturing and joint transport of stainless steel products. They already agreed for mutual semi-finished steel supply during outage, cooperation for dust recycling, joint study for reduction of energy and carbon dioxide emission and joint utilization of management system. They keep talking for further tie-up.