TOKYO (Sep. 19, 2001)--Nissho Iwai Corporation and ITOCHU Corporation have agreed to establish a new company by integrating PT INDONESIA SARANA STEEL CENTER (ISSC), an ITOCHU group steel service center and PT NICORINDO BAJA (NICO), a Nissho Iwai group steel service center, both located in Indonesia.

Since immediately after the commencement of operations, ISSC and NICO have been grouping for drastic management improvements under the influence of the currency crisis and political turmoil. The steel sheet market in Indonesia is a marketplace where future growth can be expected, and both companies consider that steel sheet processing service functions for users centering on Japanese-affiliated companies should be maintained and reinforced. As a result of consideration and discussions, ITOCHU and Nissho Iwai have decided to integrate ISSC and NICO Steel Service Centers to form a new company (Various applications to the local organizations concerned are currently in process). 

By establishing a new company, the strengths of both companies can be combined - NICO focusing on meeting "home electric appliance/OA" related demands and ISSC focusing on meeting "automobile" demands. Both ITOCHU and Nissho Iwai will aim at strengthening their sales forces, and at increasing production efficiency by improving efficiency in work distribution classified by thickness and type of steel, at the factory facilities of both companies. It is certain, thereby, that quality and lead time management will greatly improve, leading to further improvements in services to customers. 

Outline of the new company

1.Company Name: 
PT UNITED STEEL CENTER INDONESIA, abbreviated as USC (tentative)

2.Address: 
MITRA KARAWANG INDUSTRY ESTATE N0. 81
PARUNGMULYA, TELUK JAMBE, KARAWANG
INDONESIA

3.Establishment: 
October 2001

4.Paid-in Capital: 
US$3,900,000.

5.Capital Composition: 
ITOCHU Corporation 85.1%
Nissho Iwai Corporation 14.9%
Number of employees - approximately 170

6.Type of Business: 
Steel Service Center (slitting and cutting processes, storage and sales)

7.Outline of Factories: 
Location: KARAWANG (formerly ISSC) 
Processing Capability: 6,000mt/month
Major Facilities: (2-shift) large leveler share, slitter, mini slitter, etc. 
Location: Cikarang (formerly NICO) 
Processing Capability: 4,000mt/month
Major Facilities: Large leveler share, slitter, mini leveler, etc. 
Note; Both factories are relatively closely located, around 20-30 minutes by car.

8.Major customers:
Home electric appliance manufacturers, OA equipment manufacturers, automobile manufacturers, etc.