There have been some reports concerning the steel operations in the North America that " it would be appropriate for the Kawasaki - NKK alliance to have ties with only AK Steel, and it would be unnecessary to maintain NKK's subsidiary, National Steel."

   However, there has not been any mutual agreement between NKK and Kawasaki Steel with respect to the North American Strategy. NKK's position that National Steel plays a strategic role in the North America remains unchanged.