Tokyo - JFE Steel Corporation and Dofasco Inc. (Head office: Hamilton, Ontario, Canada) have reached an agreement on their respective roles in DNN Galvanizing Corporation, their hot-dip galvanizing joint venture in Windsor, Ontario which provides galvanized products to the automotive industry. JFE Steel will grant Dofasco a long-term lease on the rights to JFE's line capacity at DNN Galvanizing, and JFE will supply Dofasco, on an as-needed basis, with special-grade wide-width cold-rolled steel sheets which the latter does not manufacture. As part of the new arrangement, DNN Galvanizing Corporation will change its name to DJ Galvanizing Corporation (DJG). The new arrangement will strengthen and expand JFE's global system for steel supply to the automotive industry, one of its most important customers.

1. Outline of the Agreement with Dofasco

JFE and Dofasco have agreed on the following regarding their respective roles in DJG (formerly DNN), their galvanizing joint venture located in Windsor.

1) Change of Name
The name of the joint venture, DNN Galvanizing Corporation, will be changed to DJ Galvanizing Corporation.

2) Long-term Lease of Rights to Line Capacity
JFE Steel will lease its rights to the DJG joint venture (50% of line time, equivalent to 200,000 tons of production per year) to Dofasco on a long-term basis and will receive remuneration from Dofasco for these rights. Dofasco will use the rights to produce automotive galvanized steel sheets, which it will market to North American automakers through its own sales channels. When necessary, Dofasco will purchase from JFE Steel special-grade wide-width cold-rolled full hard sheets, that Dofasco is unable to produce on its own, for use in the surface-treatment process of the joint venture.

2. Profile of DJ Galvanizing Corporation (formerly DNN Galvanizing Corporation)

3. Profile of Dofasco Inc.