TIMET AND NIPPON STEEL AUTOMOTIVE MARKETING AGREEMENT
In October 2001, TIMET announced that is has entered into an agreement in principle with Nippon Steel Corporation ("NSC") to jointly market TIMET's TIMETAL(R)LCB to automotive original equipment and aftermarket manufacturers in Japan. Upon completion of a definitive agreement, TIMET will make TIMETAL LCB, a patented titanium alloy with superior spring characteristics, available to the Japanese automotive market exclusively through NSC. NSC is the recognized leader in alloy steel suspension spring wire processing with an estimated 50% share of Japanese production and 14% of world production.
TIMET will provide NSC with an assured supply of TIMETAL LCB for the Japanese automotive market while potentially expanding the presence and usage of TIMET's proprietary alloy. The agreement in principle follows TIMET's strategy of negotiating long-term partnering agreements to drive production costs to a point where titanium is cost competitive in specific applications for high volume production vehicles.
TIMET and NSC will also engage in joint marketing, sales, and technical support efforts to help both companies establish mutually beneficial commercial and technical relationships involving TIMETAL LCB with Japan-based suspension spring manufacturers, and automobile, motorcycle, and truck producers.