Nippon Steel Corp. and Kobe Steel Ltd. said Tuesday they will enter a comprehensive tieup in steel production and distribution in a bid to reduce costs and improve their competitiveness.
Nippon Steel, the nation's largest steelmaker, and Kobe Steel, its fifth-largest, will supply each other with semifinished steel products. They will also cooperate in distribution, material procurement and equipment maintenance.
The supply arrangement has become necessary following Nakayama Steel Works Ltd.'s decision last month to close down its blast furnaces, they said.