**OT** Lakshmi Mittal (ISPAT-Nyse IST) in JV with Commerce One (CMRC)
inland.com
(Ispat International and Commerce One Create the Metal Industry's First Global Business-to-Business Procurement Portal)
ROTTERDAM/WALNUT CREEK, Calif.--(BUSINESS WIRE)--March 2, 2000-- Ispat International N.V. (NYSE: IST US; AEX:IST NA), a leading, global steel producer and Commerce One (NASDAQ: CMRC - news), the leading provider of global business-to-business e-commerce solutions, today, announced plans to form a new company that will create and operate the first e-commerce trading community for the whole metals industry. The parties expect to conclude definitive agreements by March 31, 2000.
The new company will join the Commerce One Global Trading Web, and will establish the first, global electronic exchange to link buyers and sellers of goods and services across the metals industry, throughout the world. The portal will encompass supply chain participants from the metals industry, including the steel, aluminum, zinc, copper and mining sectors. It is believed that given the similarities in the manufacturing processes for these metals, and the overlap with suppliers and customers, there is clear scope for capturing procurement synergies across these different businesses.
This exchange, based upon the Commerce One© MarketSite(TM) Portal Solution, will be open to metal producers of all sizes, their suppliers and their customers, allowing them to trade globally with greatly increased speed, reach and efficiency. Ispat International is currently in discussions with leading metal producers, to join forces on this exchange.
``We look forward to delivering an enormous opportunity for business transformation, through the creation of a business-to-business e-trading purchasing community for the metals industry,' said Lakshmi N. Mittal, Chairman and CEO of Ispat International. ``This is also a significant step for us, as we prepare to set the pace in the steel industry, by offering huge benefits to buyers and suppliers through the use of Internet technology.'
Mark Hoffman, President and CEO of Commerce One, commented, ``We believe that Ispat International's proven track record as a leading global, innovative and low cost producer of steel, makes them an ideal partner for Commerce One in this industry. Their willingness to join forces with others in the metals industry will help to create a critical mass of electronic procurement, first.'
A single marketplace will enable metal producers and manufacturers to significantly reduce direct and indirect procurement process costs, provide access to real-time information on global procurement transactions and improve cycle times. Buyers can realize reduced costs of their purchases through improved control of their spending and the capability to source goods globally. Suppliers in this marketplace can benefit significantly from access to an enlarged customer base and the opportunity to reduce both costs of sale and order management costs.
Ispat International N.V.
Ispat International N.V., a member of The LNM Group, is the world's fifth largest steel producer, with operations in countries including the United States, Canada, Mexico, Trinidad, Germany, France and Ireland. Ispat International has over 5,000 suppliers world-wide, with an annual procurement spend of approximately $4.5 billion.
A leader in steelmaking technologies, Ispat International is also the world's largest producer and consumer of Direct Reduced Iron. The company has over 18,000 employees and manufactures a broad range of coated, cold rolled and hot rolled products, high quality wire rods and semi-finished flat and long products. The LNM Group also has steelmaking operations at Ispat Karmet in Kazakhstan and Ispat Indo in Indonesia.
About the Commerce One Global Trading Web
The Commerce One Global Trading Web is the world's largest business-to-business trading community. Comprised of many open e-marketplaces running on the Commerce One MarketSite Portal solution, the Global Trading Web provides unprecedented economies of scale for buying organizations, suppliers, and service providers worldwide. Each global trading portal is independently owned and operated by a leading market maker in a region or industry resulting in the greatest choice for all trading partners. Global trading portals are currently operated by Banacci in Latin America, British Telecommunications in the United Kingdom, Cable and Wireless Optus in Australia, Citigroup in the United States, Commerce One in the United States, Compaq Taiwan in Taiwan, Deutsche Telekom in Germany, Endesa in Spain, NTT Communications in Japan, Portugal Telecom in Portugal, SESAMi.com in Singapore, Sinar Mas Group in Indonesia, Swisscom in Switzerland, and Toronto Dominion Bank in Canada. In addition, General Motors and the Royal Dutch/Shell group operate global trading portals for the automotive and energy industries, respectively. |
