The outlook was indeed bleak, with the operation bleeding cash and torn between its joint owners, Armco and Kawasaki Steel.

Kawasaki Steel suffered a pre-tax loss of 32.3 billion yen, compared with a profit of 7.5 billion yen a year earlier.

SDA, a San Jose, Calif., producer of computer-aided design programs, will provide its software to Kawasaki Steel at preferential prices under the agreement, he said.

The chairman of Armco said the company's decision to sell a 40 percent stake in its steel-making unit to Kawasaki Steel of Japan came a little late.

In 2000, the price war resulting from the so-called Ghosn Shock impacted the business performance of steel manufacturers such as Kawasaki Steel.

Kawasaki Steel would also receive the right to negotiate an increase in its investment to a maximum of 50 percent.

Kawasaki Steel is Japan's third-largest steel producer.

AK was spun out of Armco in partnership with Kawasaki Steel of Japan - hence the name.

Kawasaki Steel is now saying that it might have to do the same.

Kawasaki Steel was eventually sold off to become part of JFE Holdings.