Nippon Steel To Strengthen Ties With S Korean Ally

June 8, 2000

TOKYO (Nikkei)--Nippon Steel Corp. (5401) will build up its strategic partnership with South Korean steelmaker Pohang Iron & Steel Co. (Posco), company President Akira Chihaya said Thursday.

Chihaya made the announcement during a lecture at the Future of Asia international conference. "We will work together researching basic technology in such fields as new types of steel," he said.

Chihaya said his firm and Posco are currently equal in international competitiveness and added, "We want to launch joint research on materials developed using new technology, such as systems engineering." He said that Nippon Steel aims to develop a new type of steel, the use of which would halve the amount of steel necessary to construct a structure like Tokyo Tower.

To date, Nippon Steel has provided steel manufacturing technology to Posco and has cooperated with the firm to construct Posco iron works since the 1960s. Both steelmakers agreed to buy 1% of each other's outstanding shares in 1998.

(The Nihon Keizai Shimbun Friday morning edition)

Titles of speakers, names of companies, etc., were correct as of the time when the forum was held.