Future demand is unlikely to grow significantly for steel plate used in bridges and structures. To create an optimum production and operating system and to improve cost competitiveness, the two companies intend to merge the two production locations located near each other. In terms of quality, delivery and other customer services, the two companies anticipate they would be able to offer improved services by combining their steel processing technologies and know-how cultivated over the years.

Combining the businesses will enable the new company to provide improved services to its customers.

Outline of the Current Companies

Kansai Steel Center Co., Ltd.	Shinko Shearex Co., Ltd.
Established: April 1986 Location: Osaka Capital: 201 million yen Shareholders: 　Nippon Steel Corp. 51.7% 　Marubeni-Itochu Steel Inc. 33.3% 　Metal One Corp. 10.0% 　Nippon Steel Trading Co., Ltd. 5.0% President: Takeshi ONO Employees: 63 FY2002 sales: 2.8 billion yen	Established: October 1989 Location: Amagasaki, Hyogo Capital: 177 million yen Shareholders: 　Kobe Steel, Ltd. 65.5% 　Mitsui & Co., Ltd. 17.9% 　Metal One Corp. 8.3% 　Shinsho Corp. 8.3% President: Norishige SHIMADA Employees: 27 FY2002 sales: 1.2 billion yen

Outline of New Company