Nagoya, November 28,2000 - Aichi Steel announced today at the Central Japan Trade and Industry Bureau press clubs that it will join Nippon Steel (Takashi Imai, President) and Toyota Motor (Fujio Cho, President) in the area of technological development of special alloy steel bars and wiring. They will integrate their production processes in special alloys, forging, and automobile parts, thus establishing a global competitive edge it these sectors.

In the past, Aichi Steel and Nippon Steel have conducted joint research with the Toyota Motor independently of each other in developing parts for Toyota automobiles. Now, Nippon Steel, Aichi Steel and Toyota Motor will jointly develop new technologies such as innovative materials, production methods, and parts. The companies will set specific objectives with a priority of protecting environment.

Other objectives will involve weight reduction and rationalization of production processes based on integral production concepts and methods in special alloys and parts. The results of the joint research will be made available to Aichi's domestic and overseas user companies.

Measures to reinforce production and cost competitiveness will focus on sharpening the competitive edge and strengthening neighbouring ironwork facilities of Nippon Steel in Nagoya. Towards working on the competitive edge, both steel manufacturers will develop an effective production system by increasing the cooperation between Aichi Steel and Nippon Steel and the effectiveness of Aichi Steel and Nippon Steel's Muroran Steel Work Facility.

Towards strengthening the neighbouring ironwork facilities in Nagoya, the companies will develop the teamwork during major repairs, establish staff-exchange programs, and promote mutual use of facilities for research of special alloy steel.

Aichi Steel says that the ultimate beneficiaries of this cooperative effort will be the customer.