Kawasaki Steel, Stelco Of Canada To Cooperate On Auto Steel Venture

Autoparts Report,  May 3, 2002  

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Kawasaki Steel Corp. said it would tie up with Canada's biggest steelmaker, Stelco Inc., on sheet steel for automobiles and other areas. Kawasaki said it had agreed to extend its technology consultancy agreement with Stelco, and that the firms would work together to manufacture and develop automobile sheet steel and critical bar products, as well as large diameter pipe materials.

"We want to build an even closer relationship between our two firms to increase profits," Kawasaki said. "With this agreement, we will be better able to serve our customers in Canada and provide higher quality products." The alliance will be the latest in a series of tie-ups between steelmakers to supply carmakers in response to calls for cheaper products and improved availability abroad as many automakers move business overseas.

Kawasaki and NKK Corp.-- set to merge by October to create Japan's largest steelmaker -- this month announced a tie-up with Germany's ThyssenKrupp AG on research and development of steel for automobiles. Japan's fourth-largest steelmaker, Sumitomo Metal Industries Ltd., agreed to an alliance with Anglo-Dutch steelmaker Corus Group Plc. in January that also involved collaborating on steel products for the auto industry.

Japanese steel companies have also been driven to alliances with foreign competitors to help combat falling orders as a result of the country's economic slump and price competition from South Korean and Chinese firms.

COPYRIGHT 2002 Ron DeMarines
COPYRIGHT 2008 Gale, Cengage Learning