Kobe Steel to Sell Share in Venezuela HBI Plant to CVG

Kobe Steel announced the firm signed agreement on Friday to transfer all of shares held in its Venezuelan hot briquetted iron making affiliate, Complejo Sider?rgico de Guayana (Comsigua) to Corporaci?n Venezolana de Guayana (CVG) of Venezuela.

Kobe Steel is the largest shareholder with 21.29% shares in Comsigua with US$ 115 million of capital. Venezuelan president, Hugo Chavez announced on May 21 2009 the government will nationalize Comsigua. Kobe Steel and Japanese shareholders of Comsigua including Japanese major trading firms, Marubeni Corporation, Mitsui & Co., Sojitz Corporation and Shinsho Corporation had been negotiating on share transfer with Venezuelan government. The Japanese shareholders agreed to stock transfer with CVG.

Kobe Steel withdraws 4 directors of the affiliate along with the nationalization. Kobe Steel expects the transaction has very small impacts on the results.