Post by Catdaddy on Nov 2, 2007 10:36:28 GMT -5
Folks, if this is a hint of future collaborations between Japan and China then our economy will indeed be SOL...maybe not in our lifetime but it will happen. The predictions of a Pan-Asian economy and military, and a uniting of Japan and China were grim for us in the "West". It would appear that these two countries have buried their political hatchets from the WW-II days. Hopefully CMKX will be able to benefit in some way with processed iron ore sales and shipments to Baosteel as mentioned a few years ago on this information board. Short term=GOOD, Long term=BAD. As always, JMHO. Later,
Catdaddy
UPDATE 2-Baosteel, Nippon Steel aim to strengthen ties
www.reuters.com/article/marketsNews/idUKT27458820071102?rpc=44&pageNumber=1
By Yuko Inoue
KISARAZU, JAPAN, Nov 2 (Reuters) - Nippon Steel Corp (5401.T: Quote, Profile, Research) and Baosteel Group Corp (600019.SS: Quote, Profile, Research) are strengthening their ties to compete against ArcelorMittal (MT.N: Quote, Profile, Research) and protect against takeovers in the consolidating global steel industry.
The Japanese and Chinese companies, the world's second and fifth-biggest, also said on Friday they would build a 450,000 tonnes-a-year automotive sheet line at their Shanghai plant by 2010, boosting its output by 50 percent.
Baosteel, Nippon Steel had been discussing the capacity expansion at their joint venture -- which also includes ArcelorMittal -- for some time to cope with a rapid expansion in China's car market.
Nippon Steel President Akio Mimura and Baosteel Chairman Xu Lejiang said the emergence of ArcelorMittal (MT.N: Quote, Profile, Research) as the world's biggest steelmaker last year drastically changed the market, forcing them to adjust their strategy, though in this instance they are collaborating with their European-based rival.
"The industry realignment has not ended. An acquisition will have a knock-down effect on another, gradually pushing consolidation in the sector," Akio Mimura, president of Nippon Steel, said. "Every steelmaker should get itself ready for a realignment, or it will be taken over."
Asked if the alliance with Baosteel was to establish an axis to act as a counterweight against ArcelorMittal, Mimura said: "That is exactly what we are doing."
The two firms said they would expand their partnership to areas such as the exploration of raw materials, protection of the environment and exchange of technology.
Mimura said as high share prices make mergers difficult, Nippon Steel aims to form alliances with reliable partners.
Baosteel's Xu said: "We'll get bigger at home through acquisitions and have a reliable partner on the international market. That is our important strategy to avoid being taken over." He said the company planned to ask partner steelmakers to agree to cross-shareholdings should it list overseas.
The automotive sheet joint venture in Shanghai, which started full production in 2005, already has two continuous galvanising lines, one with capacity of 450,000 tonnes a year and one of 350,000 tonnes.
Xu was in Japan to celebrate the 30th anniversary of the relationship between Nippon Steel and Baosteel, which was founded with Nippon Steel's technical assistance based on an official request by the Chinese government.
Catdaddy
UPDATE 2-Baosteel, Nippon Steel aim to strengthen ties
www.reuters.com/article/marketsNews/idUKT27458820071102?rpc=44&pageNumber=1
By Yuko Inoue
KISARAZU, JAPAN, Nov 2 (Reuters) - Nippon Steel Corp (5401.T: Quote, Profile, Research) and Baosteel Group Corp (600019.SS: Quote, Profile, Research) are strengthening their ties to compete against ArcelorMittal (MT.N: Quote, Profile, Research) and protect against takeovers in the consolidating global steel industry.
The Japanese and Chinese companies, the world's second and fifth-biggest, also said on Friday they would build a 450,000 tonnes-a-year automotive sheet line at their Shanghai plant by 2010, boosting its output by 50 percent.
Baosteel, Nippon Steel had been discussing the capacity expansion at their joint venture -- which also includes ArcelorMittal -- for some time to cope with a rapid expansion in China's car market.
Nippon Steel President Akio Mimura and Baosteel Chairman Xu Lejiang said the emergence of ArcelorMittal (MT.N: Quote, Profile, Research) as the world's biggest steelmaker last year drastically changed the market, forcing them to adjust their strategy, though in this instance they are collaborating with their European-based rival.
"The industry realignment has not ended. An acquisition will have a knock-down effect on another, gradually pushing consolidation in the sector," Akio Mimura, president of Nippon Steel, said. "Every steelmaker should get itself ready for a realignment, or it will be taken over."
Asked if the alliance with Baosteel was to establish an axis to act as a counterweight against ArcelorMittal, Mimura said: "That is exactly what we are doing."
The two firms said they would expand their partnership to areas such as the exploration of raw materials, protection of the environment and exchange of technology.
Mimura said as high share prices make mergers difficult, Nippon Steel aims to form alliances with reliable partners.
Baosteel's Xu said: "We'll get bigger at home through acquisitions and have a reliable partner on the international market. That is our important strategy to avoid being taken over." He said the company planned to ask partner steelmakers to agree to cross-shareholdings should it list overseas.
The automotive sheet joint venture in Shanghai, which started full production in 2005, already has two continuous galvanising lines, one with capacity of 450,000 tonnes a year and one of 350,000 tonnes.
Xu was in Japan to celebrate the 30th anniversary of the relationship between Nippon Steel and Baosteel, which was founded with Nippon Steel's technical assistance based on an official request by the Chinese government.
