P.M. BRIEFING : NKK Focuses on National Steel

Nippon Kokan KK expects to reach an agreement by the end of the year to increase its 50% stake in National Steel Corp. of Pittsburgh, it was reported today.

Such a move would give Japan’s second-largest steel producer control of the sixth-largest steel company in the United States, the Pittsburgh Post-Gazette said.

NKK purchased a half-interest in National five years ago from National Intergroup Inc. NII and NKK have been negotiating the deal since at least summer, and at National Intergroup’s request, National Steel President Kokichi Hagiwara said.

Such a deal would not be without its image problems, Hagiwara said.

“The problem is that some negative reactions are expected when a Japanese (firm) gets a majority of an American firm in basic industry,” he said. “I am afraid that some of our customers and employees do not like that.”