Nippon Steel Corp. said Wednesday it is engaged in talks with French steelmaker Usinor SA over cooperation in the U.S. market but nothing has been finalized.
The steelmaker's comments came in the wake of a Japanese newspaper report claiming that Nippon Steel and Usinor had reached a basic agreement to jointly produce sheet steel for automobiles in the U.S.
"We and Usinor have been exchanging views on the possibility of business cooperation in the U.S. since the signing of a strategic business tieup agreement in January, but no decision on it, including this one, has been made," Nippon Steel said in a brief statement.
The Wednesday morning edition of the Nihon Keizai Shimbun reported that the two steelmakers had agreed to take stakes in Ispat Inland Inc., a wholly owned subsidiary of the London-based LNM group, the world's fourth-largest steelmaker. It also said they had agreed to launch a joint venture as early as next year.
The business daily said the venture, which would supply automakers in the U.S. with steel, would allow Nippon Steel and Usinor to boost international competitiveness.
The daily said the two firms would likely buy between $200 million and $300 million worth of new shares scheduled to be issued by Ispat Inland through private placements sometime next year.