TOKYO (May 14, 2003) – Kobe Steel, Ltd. and subsidiary Shinko Pantec Co., Ltd today agreed to combine Kobe Steel's environmental business into Shinko Pantec on October 1, 2003. This move will consolidate the management resources of the environmental businesses of the two companies into one unit and further strengthen the Kobe Steel Group's comprehensive environmental solutions business. The two companies announced on March 18 they would combine their environmental businesses in January 2004. However, after further consideration they decided to move up the plans due to the advantages of a combined business and confidence that the business will expand and further grow. The corporate split and merger procedure will be used to combine the businesses, with Shinko Pantec becoming the continuing enterprise. Shinko Pantec will be renamed Kobelco Eco-Solutions Co., Ltd. The new entity will become the main company in the Kobe Steel Group for the environmental business. The two companies have operated their businesses separately and each have specialized menus. Kobe Steel's business is centered on wastewater treatment, including sludge incineration and municipal solid waste incineration. Shinko Pantec has strong experience in water and sewage treatment, industrial wastewater treatment, and ultrapure water generation equipment. From both the public and private sectors, it has received high evaluations in the water treatment field. To date, the environmental business has consisted of supplying equipment to users. However, private finance initiatives, private-sector operation of public facilities, and other changes to meet new needs are increasing. In response to a rapidly changing market and technologies, the two parties decided to combine their technical capabilities, marketing and business know-how to develop the environmental solutions business. Through this consolidation, in the water treatment field Kobelco Eco-Solutions would be able to strengthen its development of advanced treatment and sewage reduction technologies. In waste treatment, expanding into new business areas – including PCB and dioxin treatment, soil decontamination, PVC recycling, and biomass utilization – will enable Kobelco Eco-Solutions' comprehensive environmental business to further grow.
Vision Strategic Business Areas
@
(Figures in parentheses denote losses.) * The fiscal 2003 forecast consists of Kobe Steel's environmental sales in the second half of fiscal 2003 and the full-year forecast for Shinko
Pantec. |