Nippon Steel Shares Strategy with Usiminas

Nippon Steel announced on Thursday the firm acquired additional share in Nippon Usiminas, which has 21.6% share in Usiminas of Brazil, and Nippon Steel made Usiminas equity method affiliate. Nippon Steel tries to improve the supply ability of high valued steel products to South American users eyeing new slab plant project by Usiminas. Nippon Steel shares the strategy for global no.1 supplier focusing on medium-high grade steel products with Usiminas to keep expanding their profit and corporate value. Nippon Steel increased the share in Nippon Usiminas, which was Nippon Steel’s equity method affiliate, to 50.9% making the entity consolidated subsidiary. Nippon Steel purchased 1.7% share in Usiminas to join the controlling shareholders’ group in November. Nippon Steel has supported Usiminas through management participation through Nippon Usiminas and technical aid to become high valued steel supplier. They supply high valued automotive steel sheet to local users through the continuous galvanizing steel making joint venture, UNIGAL. Usiminas announced a year earlier the US$ 1.5 billion 5-year investment plan to expand the raw steel output capacity to 10 million tonnes from 8.66 million tonnes in 2005 and to improve the quality. The firm also considers potential slab making plant for US$ 3 billion with the offshore partners depending on offshore demand condition.