Shareholders Agreement Takes Effect on Usiminas of Brazil

Nippon Steel Corporation (NSC) announced on Wednesday NSC completed the purchase of a part of ordinary shares in Usiminas, Brazilian major steel maker and NSC’s equity method affiliate company, and the new shareholders agreement on Usiminas took effect on Monday. Along the new shareholders agreement, Usiminas is controlled by Japanese enterprise group, mainly NSC, and Ternium Group, Latin American major steel group.

Usiminas held the board meeting on January 17 and, at the meeting, Juli?n Alberto Eguren, who had served as chief executive officer of Ternium Mexico, was appointed as the new chief executive officer of Usiminas. NSC cooperates with Ternium to strengthen competitiveness and raise enterprise value of Usiminas when management circumstances have become severer due to raw material cost upsurge and underlying trend of higher Brazilian currency real.

NSC explained the firm agreed with Ternium in appointment of Usiminas’ new CEO in order to accelerate restructuring measures to improve Usiminas’ profitability and market competitiveness.

Usiminas started operation in 1962 with monetary and technical supports by Japanese steel industry. Usiminas has recently introduced NSC’s technology to produce high grade steel plate and implemented strategic capex in high grade steel productions, actually to expand output capacity for automotive steel sheet and to construct a new hot rolling mill.

NSC announced in November 2011 the firm implements additional share purchasing in Usiminas and agrees in the new shareholders agreement. Along the new shareholders agreement, Brazilian enterprises, Votorantim Industrial VBC Energia of Camargo Group released controlling shares in Usiminas and Ternium Group newly held the shares. Brazilian group holds total approximately 64% ordinary shares in Usiminas.