Press Releases

The information on this Web site is presented "as is." Product availability, organization, and other content may differ from the time the information was originally posted. Changes may take place without notice.

2007 New Year's Message from President Yasuo Inubushi

January 5, 2007

On January 5, the first working day of the New Year, President and CEO Yasuo Inubushi gave a speech to company employees. Here is a summary of his remarks translated from the Japanese.

Progress of the Medium-Term Business Plan

In the first fiscal year of our Medium-Term Business Plan, we expect to attain strong business performance, with consolidated ordinary income of 170 billion yen and net income of 100 billion yen. These achievements have been brought about by the hard work of our employees to meet customers' needs. They have made full use of their originality and ingenuity to sustain high-level production and sales.

On the other hand, there have been frequent occurrences of occupational injuries and accidents at facilities. We must take a hard look at preventing them.

The source of our company's competitiveness is the strength of each employee. I would like all employees to improve their abilities through friendly competition among themselves and work together as a team so that they can contribute their individual abilities to the organization and then to the comprehensive strength of the Kobe Steel Group. I would like to see this kind of effort being made at all workplaces.

Conditions Surrounding the Steel Business

A new steel giant will be born when Mittal Steel completes its acquisition of Arcelor. In Japan, triangular mergers will be liberalized in May. Although Kobe Steel has introduced a takeover defense measure that requires advanced notification, this measure is not perfect.

Under the circumstances, what we have to do is continue our efforts, without wavering, to increase our presence and corporate value. I believe the most effective takeover defense measure is for the Kobe Steel Group to win the recognition and trust of all stakeholders.

The Path Kobe Steel Must Take

We will steadily implement our Medium-Term Business Plan to reach a higher level of performance. The Medium-Term Business Plan is a proposition we must accomplish. It is not a goal in itself, but a milestone we pass before we reach the next phase. Maintaining the positions of today's "Only One" products tomorrow will require enormous effort. It is vital for us to determine current trends and customers' needs; expand our Only One products; improve our financial strength; increase our business competitiveness; and keep on building up our business structure. In addition, in such areas as environmental protection and the establishment and implementation of internal controls including compliance, we will establish appropriate systems for a company with over 100 years of history.

Inherent in the Kobe Steel Group's corporate philosophy is "trust." We must do what we have to do without fail and win the trust of all stakeholders. This is the kind of corporate culture I am hoping to build.

In order to add value to the KOBELCO brand, I ask all the employees in the Kobe Steel Group to further energize themselves this year.