Kawasaki Steel Corporation ("KSC", President: Fumio Sudo) and NKK Corporation ("NKK", President: Masayuki Hammyo) have entered into the Agreement for Consolidation, and the two companies will submit the Agreement for approval at the respective annual shareholders' meetings scheduled for June 2002. Following are new basic items the two companies have agreed upon in the Agreement, in addition to those announced in December 2001 and February 2002:
I. Conditions of Stock-for-Stock Exchange
1. Scheduled date for establishing JFE Holdings, Inc.
2. Exchange Ratios
3. Stock Exchange Listing
II. Capital and Auditors of JFE Holdings, Inc.
III. Corporate Symbol
A sphere rotating eternally symbolizes JFE Group's stated mission. The endlessly rotating globe represents a group constantly pursuing new opportunities by actively seeking out new contacts and by deepening its communication with all customers. The blue color stands for trust and profoundness, and expresses the image of the corporation acting on a global stage and the infinite possibilities in association with sky and universe.
IV. Accelerated Realization of Synergy Effects
1. Synergy Effects in this fiscal year ending March 2003
The efficiency of R&D operations will be enhanced by avoiding redundancies of projects and focusing more on the development of new products.
2. Blast Furnace Operations and Optimized Production
(1) Relining of Blast Furnaces
i) Relining of the No. 2 blast furnace at Keihin Works will be postponed by one year and be completed in the second half of fiscal year ending March 2005.
(2) Blast Furnace Operations
i) As for Chiba Works, JFE Steel will close the No. 5 blast furnace by the end of fiscal year ending March 2004 and operate only the No. 6 blast furnace.
3. Integrating Other Production Facilities
(1) Production of stainless steel slab (steel-making and casting)
(2) Sheets: Batch Annealing Furnace and Continuous Annealing Line at Keihin Works
(3) Others: Consolidation of Rolling Mills (Sheets, Shapes, and Pipes & Tubes)
This release includes forward-looking statements that reflect plans and expectations of KSC and NKK in relation to the share exchange schemes described above and the benefits resulting from them. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including in particular the ability of JFE Group to realize synergies effectively and future trends in the level of demand in the Japanese and overseas steel markets, that may cause JFE Group's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements of financial position expected or implied by these forward-looking statements.
|If you have any questions, please contact:|
Kawasaki Steel Corporation
Tetsuo Oki (Mr.)
Manager, Investor Relations
Phone No : 81-3-3597-3280
Fax No : 81-3-3597-3266
Yukio Harada (Mr.)
Investor Relations Department
Phone No : 81-3-3217-2183
Fax No : 81-3-3214-8407
Shinji Okutsu (Mr.)
Manager, Public Relations
Corporate Secretariat Department
Phone No : 81-3-3217-2140
Fax No : 81-3-3214-8436