TOKYO - JFE Steel Corporation (President: Hajime Bada) and ThyssenKrupp Steel AG of Germany (Chairman of the Executive Board: Karl-Ulrich Koehler) have agreed to extend for another five years, beginning April 2007, the Comprehensive Cooperation Agreement on automotive steel sheet and related research and development signed by the companies in April 2002.

Under this agreement, JFE Steel and ThyssenKrupp Steel have engaged in joint R&D and cross-licensing of technologies under four working groups overseen by the Cooperation Promotion Committee led by top management and tasked with specific topics such as high-tensile-strength steel sheets, surface coating and advanced steel application technologies. This has enabled the companies to better respond to growing steel demand from increasingly globalized automotive manufacturers. Significant results include: 1) development of common specifications for automotive steel sheets, 2) cross-licensing of high-quality steel sheets, and 3) a joint venture to enhance early vendor involvement (EVI) activities.

In extending the Comprehensive Cooperation Agreement, JFE Steel also agreed to license to ThyssenKrupp Steel its proprietary technology for JAZ (JFE Advanced Zinc) high-lubrication galvannealed (GA) automotive steel sheet, which is environmentally friendly and has excellent press formability. Under the agreement, JFE Steel and ThyssenKrupp Steel will build supply systems in both Japan and Europe and will work to establish JAZ as a global standard.

(Reference) Major Achievements of the Comprehensive Partnership:

1. Development of common specifications for high-tensile-strength steel sheets (up to 590 MPa)

JFE Steel and ThyssenKrupp Steel developed common specifications for high-tensile-strength steel sheets up to 590 MPa to meet the global sourcing requirements of Japanese and European automakers. They have also established a common system of categorizing steel to facilitate purchases of products shared by the two companies. They plan to increase common specifications in the future.

A brochure on the common specifications can be downloaded from:
http://www.tks-jfe.jp/home/index.html

2. Cross-licensing of “Only One” products

The companies have cross-licensed JFE Steel’s NANO HITEN^TM and ThyssenKrupp Steel’ CP (complex-phase steel), creating production and supply systems for these products in both Asia and Europe.

JFE Steel will also be licensing to ThyssenKrupp Steel its new JAZ high-lubrication galvannealed (GA) steel sheet, which recently entered commercial production, establishing a global supply system for the product.

3. Enhancement of EVI activities

In June 2005, JFE Steel and ThyssenKrupp Steel established a joint venture, JEVISE Corporation (President: Kazuhiro Hirohata), in Japan to promote EVI in automotive steel sheet application, an area that has grown in importance in recent years. JEVISE works from the initial stages of auto body development to propose and develop methods of steel application, parts processing and performance assessment.

4. Introduction of TWB facilities and expertise

In September 2004, a tailored welded blank (TWB) facility made by Nothelfer GmbH, a member of ThyssenKrupp’s technologies segment, came online at Mizushima Kohan Kogyo Corporation, a JFE Steel group company located at its West Japan Works. By installing the same facility used by the ThyssenKrupp group, JFE Steel can draw on ThyssenKrupp’s extensive experience. Through this collaboration, JFE Steel is also exploring new possibilities for the customized TWB business as well as researching and developing ultrahigh-strength steel TWB products with superior press forming characteristics.