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Kawasaki Steel Corporation
Kobe Steel, Ltd.
TOKYO (May 15, 2002) - Kawasaki Steel Corporation and Kobe Steel, Ltd. announced today they would form an alliance to strengthen their welding businesses. The collaboration will cover research and development of welding consumables, production and procurement. A study committee consisting of members from both companies will be set up to explore specific areas for collaboration. Plans call for the signing of the final agreement within one year. The areas under consideration at this time are 1) joint research and development on welding consumables for steel pipe and plate, 2) cross-production, and 3) joint procurement of raw materials for welding consumables. Since the 1960s, Kobe Steel has maintained a strong, close relationship with NKK Corporation in the joint R&D of welding consumables for steel pipe and plate, because NKK has no welding business of its own. As a result, Kobe Steel is currently the primary supplier of welding consumables to NKK. Over the past year, Kawasaki Steel and NKK have announced plans to operate under JFE Holdings, Inc., which is to be established in September 2002. In April 2003, the two companies plan to consolidate their operations under the business segments of the new company. On this background, NKK, Kawasaki Steel and Kobe Steel began discussions on the welding business. They decided it would work out best for Kawasaki Steel and Kobe Steel to cooperate in joint R&D on welding consumables, as product quality can be greatly affected by the welding consumables and welding technologies. In addition to welding consumables for pipe and plate, both companies agreed to explore cooperative relationships covering broader areas to improve their respective welding businesses. This led to consideration of an alliance covering welding R&D, production and procurement.
Profile of Kawasaki Steel's Welding Business
| Sales: |
3.6 billion yen (in fiscal 2001) |
| Products: |
Covered welding electrodes, MAG and MIG solid welding wires, flux-cored welding wires, solid welding wires, and submerged arc welding wires and fluxes |
| Facilities: |
Chiba Works (Chiba), Mizushima Works (Okayama) |
| Scope of business: |
R&D and production by Kawasaki Steel, marketing by Kawatetsu Welding Rod Co., Ltd. |
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Profile of Kawatetsu Welding Rod Co., Ltd. |
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| President: |
Takumi Ishizaki |
| Head office: |
River Kuramae Building,
2-17-4 Kuramae, Taito-ku, Tokyo |
| Employees: |
46 |
| Sales: |
5.1 billion yen (fiscal 2001) |
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Profile of Kobe Steel's Welding Business
| Sales: |
42 billion yen (in fiscal 2001) |
| Products: |
Covered welding electrodes, MAG & MIG solid welding wires, flux-cored welding wires, solid welding wires, submerged arc welding wires and fluxes, and welding robot systems |
| Facilities: |
Ibaraki Plant (Osaka), Saijo Plant (Hiroshima),
Fukuchiyama Plant (Kyoto), Fujisawa Industrial
Operations (Kanagawa) |
| Employees: |
692 |
| Overseas locations: |
South Korea, Malaysia, Singapore, Thailand,
Indonesia, United States, Netherlands |
| Scope of business: |
Integrated operations ranging from R&D and
production to marketing |
Media Contacts Kawasaki Steel Corporation
Public Relations Section
Tel ++81.3.3597.3161 Kobe Steel, Ltd.
Gary Tsuchida
Communication Center
Tel ++81.3.5739.6010 |
