Kobe Steel : Four Companies Form Partnership to Jointly Drive KOBELCO Group’s DX Strategies

Kobe Steel, Ltd.
IBM Japan, Ltd.
Kyndryl Japan KK
Kobelco Systems Corporation

In February, 2022, Kobe Steel, Ltd. (President and CEO Mitsugu Yamaguchi), IBM Japan, Ltd. (General Manager Akio Yamaguchi), and Kyndryl Japan KK (President Takashi Uesaka) renewed the agreement for outsourcing the IT operations of the Kobe Steel Group (also known as the KOBELCO Group) until 2027.

In addition, the three parties and Kobelco Systems Corporation (President Fumihiro Segawa), a company jointly owned by Kobe Steel and IBM Japan, have agreed to form a new partnership to jointly drive the KOBELCO Group's digital transformation (DX) strategies.

1. About the Partnership

In 2001, Kobe Steel and IBM Japan started strategic outsourcing to reinforce Kobe Steel's IT operations and reduce costs. Since then, the two companies have been renewing the agreement for 20 years and building a strong partnership.

Through the new partnership, the four parties will join forces to drive the KOBELCO Group's DX for its operational reform and business development, as well as to ensure the long-term stability in the Group's IT operations and continued optimization of costs, maintain advanced IT systems, and promote the development of human resources and technology exchanges for continued cooperation.

2. About the KOBELCO Group's DX Strategies

In fiscal 2021, the KOBELCO Group formulated a 3-year Medium-Term Management Plan, placing top priority on establishing a stable earnings base and taking on the challenge of realizing carbon neutrality. While reinforcing its business foundation to achieve these goals, the Group has set a basic policy for its DX strategies aimed at becoming a provider of products and solutions that help solve social issues together with customers, including achieving carbon neutrality by 2050. Under the DX strategies, the Group will work on innovative productivity improvement through overarching digitalization (by means such as RPA, IoT, and AI) and new value creation utilizing its unique and distinctive assets that have been developed through the operations of a wide-ranging businesses.

Going forward, the four parties will promote the innovation of information systems and the sophistication of operational management, while building and operating high-quality systems with safety and security ensured and optimizing IT costs. The partnership will move forward with the KOBELCO Group's DX strategies with the aim of bringing added value to customers.

3. About the Partner Companies

• 1. IBM Japan
  IBM Japan has been working on the smooth maintenance of IT systems at Kobe Steel through providing advanced hybrid cloud environments, AI solutions, and other areas of technical support. In addition, consultants who are familiar with various industries have been co-creating with IT experts of Kobe Steel in formulating the DX strategies and other activities and supporting customers' corporate transformation and DX.
• 2. Kyndryl
  Kyndryl started operations in September 2021 after the separation of the managed infrastructure services business from IBM. It has extensive insight and skills in designing, building, managing, and modernizing complex, mission-critical IT infrastructures, and it supports system operations for many clients worldwide. Through this partnership, the company will promote further refinement and optimization in system operations-the key facet for carrying out DX strategies. It will also help boost the corporate competitive edge through promoting DX while redoubling its efforts to ensure safety, security, and stability in mission-critical system operations at Kobe Steel.
• 3. Kobelco Systems
  As a company that performs the IT functions of the KOBELCO Group, Kobelco Systems will contribute to the implementation of this partnership through system planning, design, construction and operation in both applications and infrastructure. The company will continue to meet the needs of various customers, mainly in the domestic manufacturing industry, by integrating the spirit of dedication to manufacturing and quality inherited from Kobe Steel with the superior technology and know-how offered by IBM Japan.

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