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U. S. Steel and Kobe Steel Sign Cooperative R&D Agreement For Automotive Steel Sheet Technology

9 January 2001

U. S. Steel and Kobe Steel Sign Cooperative R&D Agreement For Automotive Steel Sheet Technology

    PITTSBURGH and TOKYO, Jan. 9 U. S. Steel Group ,
a unit of USX Corporation and Kobe Steel, Ltd. today announced that they have
signed a cooperative agreement for research and development (R&D) in the field
of automotive steel sheet technology.
    The alliance is expected to enhance the technical presence and
capabilities of U. S. Steel and Kobe Steel among automakers in the United
States, Japan and Europe.  It responds to the ever-expanding worldwide demand
for new and improved steel sheet products and sheet product technologies for
innovative automotive applications.
    Under the agreement, the two companies plan to conduct joint research and
development on high tensile steel sheet along with advanced processing
technologies for the automotive market.  The work will be conducted primarily
at U. S. Steel's research facility in Monroeville, Pennsylvania and Kobe's
research facility in Kakogawa, Japan.
    "This cooperative R&D agreement grew out of the strong performance of
PRO-TEC Coating Company, our highly successful joint venture with Kobe Steel,"
said Paul J. Wilhelm, president of U. S. Steel Group.  "We are delighted to
have the opportunity to build on our excellent relationship with Kobe Steel."
    In 1997, Kobe Steel transferred technology for 60 kgf/mm2 high tensile
steel -- highly valued by automakers -- to PRO-TEC and U. S. Steel.  The
technology was adapted by U. S. Steel personnel to facilitate production at
its steelmaking and rolling facilities as well as the PRO-TEC coating
operation.  As a result, PRO-TEC, which was formed in 1990 to supply coated
steel sheet to U.S. automakers, is the leading American producer of 60 kgf/mm2
high tensile galvanized steel sheet.
    In Japan, domestic automobile manufacturers have given such high
evaluations to Kobe Steel's high tensile steel that the company is now
synonymous with this product.  U. S. Steel, in addition to its diverse product
and research capabilities, has a state-of-the-art automotive product
application and steel testing center located in Troy, Michigan -- near
Detroit.
    Owing to these successes, the two companies decided to form the
cooperative R&D agreement to go beyond a single specialized product and to
implement technological developments in quality-critical automotive
applications on a broader and more cost-effective basis.  New areas of joint
R&D collaboration under the agreement may include such areas as ultra high
tensile steel sheet, hydroforming, tailored blanks and sheet process
simulations.
    The agreement also provides for increased technical exchanges between the
two companies and facilitates additional technology transfers.  Its intent is
to allow U. S. Steel and Kobe Steel to further expand their value added
products and more effectively serve the automotive marketplace.

    For more information about U. S. Steel, visit http://www.usx.com or
http://www.ussteel.com.
    For more information about Kobe Steel, visit http://www.kobelco.co.jp/indexe.htm.

    Visit USX Corporation's web site at http://www.usx.com.  USX Corporation
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800-758-5804, ext. 929150, or at http://www.prnewswire.com/comp/929150.html.