NKK Corp., Sumitomo Heavy Industries Ltd. and Hitachi Zosen Corp. said Tuesday they have agreed on a broad business tieup with an eye toward integrating steel plant and engineering operations by the end of March 2003.
The move will create the world's fourth-largest group in the field of steel plant and engineering operations.
The three companies said they agreed on the alliance to cope with intensifying international competition resulting from the shrinkage of the market and the emergence of huge steel firms overseas.
While studying concrete steps toward the integration of steel plant operations, the three will first establish a joint company in Tokyo in March to sell steel-making facilities and engineering services.
The new firm will be capitalized at 200 million yen. NKK will put up 34 percent of the total, Sumitomo Heavy Industries 33 percent and Hitachi Zosen 33 percent.
Beginning operations in April, the joint company is aiming to win orders worth 30 billion yen a year.