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Nippon Steel, Nippon Denko Strengthen Strategic Alliance
Feb. 11, 2010 Nippon Steel Corp. and Nippon Denko Co., Ltd. have agreed to further strengthen the alliance between them in order to enhance their respective competitive edge and corporate values.
Nippon Steel and Nippon Denko, which have maintained a close business relationship through trade in manganese ferroalloy, will strive to respond to further changes in the materials environment in the future through the alliance.
Policy goals to be pursued through the alliance include:
- Stabilizing procurement of raw materials (including manganese ore) for Nippon Denko
- Nippon Steel and its group companies providing assistance to Nippon Denko concerning the development of its overseas business
- Joint research and development with a goal to optimize production and usage methods for manganese ferroalloy
- Promoting cost reduction in the raw materials procurement and product distribution
- Concluding a long-term sales and purchase agreement for ferromanganese produced by Nippon Denko.
Nippon Steel has decided to increase its holding ratio of Nippon Denko shares (with voting rights) from the present 9.5% to 15%, upon the completion of which Nippon Denko will become an equity method affiliate of Nippon Steel.