Thursday, February 11, 2010

Nippon Steel Increases Stake In Ferromanganese Producer Nippon Denko

Nippon Steel Corporation has increased its stake in ferroalloy producer Nippon Denko from 9.5 percent to 15 percent. Nippon Denko will become an equity method affiliate of Nippon Steel.

The decision came after the companies' agreed to further strengthen their alliance, in order to enhance their competitive edge and corporate values.

The two companies have maintained a close business relationship through their trade in ferromanganese and the new agreement will enable both companies to stabilise their procurement of raw materials – including manganese ore – for Nippon Denko and to conclude a long-term sales and purchase agreement for ferromanganese produced by Nippon Denko.

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