NKK Corp. and Kawasaki Steel Corp. said Tuesday they have agreed to cooperate in rationalizing their distribution, repairs and purchases of materials in an effort to save 10 billion yen.
The deal is part of an alliance the two firms announced in April to slim down operations.
The two firms said they will use each other's shipping sites and cut down on distribution costs by cooperating in long-distance transportation.
The two steelmakers will also cooperate to reduce repair costs through such measures as exchanging information and technology, as well as sharing equipment and staff.
As for material costs, the two companies said they will make joint purchases, supply each other with necessities in order to reduce inventories and procure materials from each other's subsidiaries.
The companies also said they have agreed to consider having their subsidiaries cooperate to further cut costs.
In early April, NKK and Kawasaki said they expect to reduce costs by around 110 billion yen or more through joint rationalization efforts.