OREANDA-NEWS. September 28, 2012. This is to announce that two of Nippon Steel’s consolidated subsidiaries, Taihei Kogyo Co., Ltd. (44.5% of its voting rights held by Nippon Steel and hereinafter referred to as “Taihei Kogyo”) and Nittetsu Elex Co., Ltd. (voting rights wholly owned by Nippon Steel and hereinafter referred to as “Nittetsu Elex”) have resolved at their respective board of directors’ meetings held today to merge as of October 1, 2013 (scheduled), with Taihei Kogyo remaining as the surviving company (hereinafter referred to as the “Merger”). They have also entered into a basic agreement regarding this Merger.

While aiming to become “the Best Steelmaker with World-Leading Capabilities,” as Nippon Steel & Sumitomo Metal Corporation (which will be formed next month), Nippon Steel has been concentrating the efforts of its entire group companies on the “reduction of total facility costs (facility life cycle costs)” and the “maintenance and improvement of leading-edge facility technology,” in order to attain this objective.

Both Taihei Kogyo and Nittetsu Elex are core subsidiaries of Nippon Steel responsible for the design, construction, and maintenance of its steelmaking facilities. Through the Merger, they are expected, among others, to improve the capability to exercise their best practice by integrating their respective technologies, to enhance their ability to make engineering proposals with elements of machinery, electrical instrumentation systems, and construction combined, and to reinforce their management foundation.

Nippon Steel believes that the Merger, which is subject to the approval of the shareholders’ meetings of the respective companies and other conditions, will contribute to increasing the corporate value of these two companies and to advancing and improving the efficiency of our consolidated management.