Nippon Steel Corp. has said its strategic business alliance with South Korea's Pohang Iron & Steel Co., or POSCO, will be extended into such areas as information technology and resource development to strengthen their presence in the global market.
Japan's largest steelmaker, also the world's largest in terms of crude steel output, tied up with POSCO, the world's second-largest crude steel manufacturer, in August 2000.
They are seeking to expand their ties in the face of worldwide realignment among big automakers and resource development enterprises, which could result in oligopolies in these areas, Nippon Steel officials said Monday.
In the IT area, the companies agreed to study joint operation of an Internet portal site for online trading of steel products, they said.
Nippon Steel will introduce online systems that POSCO developed and began operating in July. They will also launch joint IT studies to improve operational efficiency, the officials said.
In developing material resources, the two companies plan to launch mine development projects for iron ore and coal in Australia and Brazil, they said.
They will cooperate in nine other areas, including developing next-generation steel production technologies and utilizing new materials, the officials said, adding that synergy in such areas could be as big as that in management integration.