Underlining the fact that all the old certainties are breaking down, Nippon Steel Co signalled at the weekend that the one about Japanese companies not entering a business unless it was for the long term no longer necessarily holds. The company had hoped to plug the gaps left by its declining steel business by diversifying into the hot new world of portable computing, but it has found the pace too hot, and says that its Librex Computer Systems Inc is to withdraw from the US notebook computer market and will begin to wind down US operations. A similar run-down is under way at Nippon Steel Computer Co Plc in Bracknell, here. The company blames intense competition and the slumping profit margins within the industry. A team of Librex’s managers is pursuing discussions with potential purchasers and buyers. Librex’s management indicates that it will make provisions to support all existing consumer warranty and maintenance obligations extended to date. Nippon Steel retains interests in the computer field via alliances with Oracle Corp and Concurrent Computer Corp.
