A source said the agreement was a technical collaborative pact.
Nippon Steel, which is also planning an automotive sheet venture with Tata Steel Ltd(TISC.BO) in India, said it would announce the details of the alliance at 0200 GMT (11:00 a.m. Japan time), ahead of its quarterly earnings report at 0430 GMT.
A Nippon Steel manager in charge of overseas marketing will attend the briefing on the tie-up, the company said.
Rival JFE Holdings Inc said on Tuesday it would spend $1 billion on a near-15 percent stake in India's third-ranked JSW Steel Ltd to enter a fast-growth market, particularly for steel used to make cars.
Shares in Nippon Steel extended gains and were up 2.4 percent at 302 yen while shares in BlueScope were up 1.2 percent.
(Reporting by Sachi Izumi, Yuko Inoue and Taiga Uranaka)
BLUESCOPE SIGNS JOINT TECHNICAL COLLABORATION AGREEMENT WITH NIPPON STEEL FOR NEXT-GENERATION COATED STEEL
28 July 10
BlueScope Steel (BSL) today announced a long-term joint collaborative technical agreement with Nippon Steel Corporation (NSC) to develop next-generation coated steel products for global building and construction markets. Under this agreement BSL and NSC will undertake joint research and development.
This technical agreement is underpinned by a 40 year working relationship between BSL and NSC and will leverage the capabilities of each company. BSL has a proud history of market leading product developments through its iconic branded products such as COLORBOND® steel and ZINCALUME® steel and is pleased to be embarking on this new phase of cooperation with NSC, a world-leader in steel manufacturing technology.
Speaking at an official collaboration signing ceremony in Tokyo, Japan, BlueScope's Managing Director and CEO, Mr Paul O'Malley said he was excited by the near-term new product launches and the future potential prospects made possible by working more closely with a pre-eminent partner such as NSC.
"This agreement is the first step toward introducing the next-generation of coated steel technology. These new product technologies will enable us to continue to offer customers across our global footprint superior performing products, especially for building and construction markets."
Commenting on the benefits of the new technology for customers, BlueScope Steel's Chief Executive, Australian Coated and Industrial Markets, Mr Paul O'Keefe said whilst COLORBOND® steel and ZINCALUME® steel currently provide best-in-class performance, the new technology will not only improve corrosion performance but will also substantially improve the environmental credentials of these products.
"In short, COLORBOND® steel and ZINCALUME® Steel, which customers have known and trusted for over 30 years, will just get a whole lot better.
In regards to implementation of these new technologies, Mr O'Keefe said: "The products will be launched initially in Australia and then rolled out across the Company's footprint. We are currently finalising our implementation plans which include working through the standards and codes revision processes, as required under Standards Australia and the Building Code of Australia. We will advise expected market launch timeframes in due course, but anticipate that product launches will occur over the next couple of years."
About Nippon Steel Corporation
Nippon Steel, with its consolidated annual crude steel production of 40 million metric tonnes, is one of the world's leading steelmakers. The company holds a leading global position in high-end steel products by virtue of its unmatched and ever advancing technical expertise, and deployment of domestic and global strategic alliances.
About BlueScope Steel
Headquartered in Melbourne, Australia, BlueScope Steel is Australia's largest steel manufacturer. As an international steel solutions company, BlueScope has a manufacturing and marketing footprint that spans Australia, New Zealand, Asia and North America. The Company operates in 17 countries and has more than 18,000 employees worldwide, producing around 7 million tonnes of steel per year.
BlueScope is a technological leader and innovator in the development of coated building products for the building and construction markets.
BlueScope Steel's brand portfolio contains many well-known names in their respective markets including COLORBOND® steel, ZINCALUME® steel and the LYSAGHT® building products in Australia, COLORSTEEL® in New Zealand and the BUTLER® brand of pre-engineered buildings (PEBs) in the United States.
BlueScope has vertically integrated steel manufacturing operations in Australia at Port Kembla, and in New Zealand for flat steel products including steel slab, hot rolled coil, cold rolled coil, steel plate and value-added metallic coated and painted solutions. Through its joint venture North Star BlueScope Steel, the Company operates a steel mini mill in Ohio, USA. The Company also designs and manufactures pre-engineered steel buildings and building solutions products.
BlueScope operates a national network of service centres, metallic coating, painting and roll-forming facilities, and steel distribution sites throughout Australia. The Company is a major steel product supplier to the Australian building and construction, automotive and general manufacturing industries.
BlueScope also operates the Asia-Pacific region's largest network of metallic coating and painting, roll-forming facilities and PEB facilities. Combined with its PEB business in North America, the Company is a leading global competitor in steel-based PEB solutions.
