Metal One Metal One Coporation
September 4, 2003
Update on Integrating Steel Pail Business Activities

Metal One Corporation (President and COO, Masashi Mizutani), JFE Container Co., Ltd. (President, Toru Kondo), and Nippon Steel Corporation (Representative Director and President, Akio Mimura) in April this year mutually affirmed the policy of combining their steel pail departments in order to strengthen the competitiveness and shared advantages of their steel pail business activities by concentrating facilities, streamlining indirect management functions and cutting costs for materials and distribution, etc., and to strengthen product development effectiveness and quality enhancement by sharing the technical problems and research subjects and concentrating capital investments.

Following that, the three companies discussed concrete problems, reached the following accord as spelled out in the basic policy, and concluded an agreement among their respective shareholders:

The company to be established by combining the business concerned (hereinafter referred to as 'the New Company') will succeed to the entire business of Unicon Co., Ltd. (President, Toshiro Teranaka; a virtually wholly owned subsidiary of Metal One Corporation), the steel pail department of JFE Container Co., Ltd. (listed in the Second Section of the Osaka Securities Exchange), and the Daido Corporation (President, Ruuji Hata; a wholly owned subsidiary of Nittetsu Steel Sheet Corporation).

Before the combination of the business concerned, Nippon Steel Corporation will acquire the whole shares of Daido Corporation from Nittetsu Steel Sheet Corporation and will be a direct participant in the new company's capital.

Date of establishment of the New Company:
    January 1, 2004
Outline of the New Company
  1. Trade name:   Japan Pail (tentatively projected)
  2. Head office location:   Nishi-ku, Osaka City, Osaka Prefecture (tentatively projected)
  3. Main officers:   Representative Director and President, Shoro Teranaka (tentatively projected), present Representative Director of Unicon Co., Ltd.
  4. Paid-in capital:   ¥300 million (tentatively projected)
  5. Investment ratio among Metal One, JFE Container and Nippon Steel Corporation: 4:3:3
  6. Facilities:   Six lines for steel pail production (1 in China, 2 in Takaishi, 2 in Amagasaki and 1 in Itami), one for production of small and medium-size drums, and others (including steel sheet printing line)
  7. Output:   Approx. one million cans/month, steel pails and small and medium-size drums
(150,000 cans/month at Chiba, 360,000 cans/month at Takaishi, 330,000 cans/month at Amagasaki, and 160,000 cans/month at Itami)
  8. Sales:   Approx. ¥6 billion/year
The New Company's production system:
    The new company will close the Itami works of JDE Container Co.'s steel pail department within one year from the combination, concentrate the production of steel pails at JFE Container Co.'s Chiba works, Daido corporation's Amagasaki works and Unicon Co., Ltd.'s Takaishi works for an efficient production system.

Furthermore, studies on the optimum production system will be conducted and a further concentration of production bases will be made to bolster the New Company's competitiveness.

The New Company will also succeed to the production of small and medium-size drums and other containers.
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