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Press Release
Saarstahl intensifies projects for improving operating profit
Investment of around € 11 million in the Neunkirchen location
On 23.09.2004, the Board of Management of Saarstahl AG informed the Supervisory Board and company workforce about the effect that China is having on the worldwide economic development on the steel market and of the consequences of this for Saarstahl AG.
“Analysis of the trend over the last ten years has shown that we have to increase our efforts towards improving the operating profit” emphasized Dr. Michael Hanisch, Chairman of the Board. “Changes carried out within the last few years regarding the quality of Saarstahl products including increasing the proportion of grades for fulfilling the highest demands were not fully able to compensate for the pressure on operating profits due to rising costs.”
As a result of the dramatic increase in costs, in particular for the raw materials (ore, coal, coke and scrap) Saarstahl AG is confronted by the necessity to reduce production costs. In addition, it is necessary to consider disadvantages which the company faces compared with its European competitors regarding location (such as costs for transport, energy, personnel and the statutory CO2 regulations).
“The steel industry overall and Saarstahl is benefiting from a special economic situation in 2004 which is nourished by the large demand for steel in China. However, we must be prepared for “normal times,” Dr. Michael Hanisch continued.
The current structural improvement programs will therefore be combined and intensified. Potential for increasing quality and improving processes and quality of workmanship will be examined in all areas of production and central functions. The company wishes to carry out any measures required regarding personnel as it has up till now in a socially acceptable manner and without the need for operation-related cancellation of work contracts. In order to strengthen our competitive position, investments in new production facilities are also under discussion.
In its meeting on 23.09.2004, the Supervisory Board approved a major investment for the light section mill at the Neunkirchen plant. The volume of the investment amounts to around € 11 million.
“By constructing a new precision rolling stand in the light section mill, we will be able to fulfil our customers’ demands regarding the quality of Saarstahl products even better in future. This is especially true of the increasingly demanding automotive branch. Hence, we are consistently following the strategy of systematically strengthening our production departments and securing the company’s future,” said Dr. Klaus Harste, Member of the Board of Management.
In the last 3 years, Saarstahl AG has spent over € 250 million on investment in new production facilities and major repair work at the locations of Völklingen, Burbach and Neunkirchen in the Saarland.
Völklingen, 29.09.2004
Saarstahl AG, Zentralbereich Öffentlichkeitsarbeit, 66330 Völklingen,
Telephone: + 49 68 98·10 21 12 | Fax: + 49 68 98·10 40 14 | E-Mail: saarstahl@saarstahl.com
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Press Release
The latest continuous casting technology for our clients
We are one of the major manufacturers worldwide of long products in non-alloyed and alloyed quality steels and high grade steels. Traditionally, we are pioneers in mastering the so-called direct continuous casting technology for products with high and the highest quality requirements. For years we have been successfully operating four six-strand continuous casting facilities, generating preliminary materials for qualities to fulfil the upper range of demands.
In order to extend this technical competitive edge further and achieve additional improvements in relation to the quality of the products and the flexibility and capacity of the production, we have invested in a new six-strand facility with the short name S0.
This facility is the most modern of its type and, with some additional features, it represents the pinnacle of continuous casting technology today. In particular, the following can be mentioned:
- large casting radius with two levelling points; this combination reduces the tensions arising during forming and thus the danger of internal defects
- hydraulic mould oscillation and both mould and continuous casting stirrers with high performance and a broad frequency band for optimising the surface properties and interior properties of the cast products
- strand guidance in stand construction for even more precise guidance and with a positive effect on the interior characteristics
- long high performance secondary cooling which creates new possibilities for even better influencing of segregation
- first installation of forming stands on a billet continuous casting facility with which a so-called soft-reduction is made possible. The aim of this measure is the elimination of core separation to as great a degree as possible
- the largest cooling bed worldwide for slow and even i. e. low-distortion cooling of the products manufactured
With the S0, billets in the format 150 x 150 mm with a length of 8.5 to 15.5 m and 180 x 180 mm with a length of 6.0 to 13.0 m are manufactured.
With the new facility, we offer our customers increased technical possibilities over and above the proven technology from Saarstahl until now and, at the same time, it will be used to achieve further improvements in our products.
Völklingen, 30.08.2004
Saarstahl AG, Zentralbereich Öffentlichkeitsarbeit, 66330 Völklingen,
Telephone: + 49 68 98·10 21 12 | Fax: + 49 68 98·10 40 14 | E-Mail: saarstahl@saarstahl.com
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Press Release
Annual General Meeting on 30.06.2004:
The Saarstahl-concern manages to maintain its hold on
the market even in the difficult financial year 2003
Financial Year 2003
“The
economic development of the Saarstahl concern in the year 2003 went according
to plan. The financial year was characterized by a good situation regarding
orders and production but, on the other hand, also by increased costs“,
according to Hans-Günter Herfurth, Member of the Board of Saarstahl AG, at the
regular general meeting on 30.06.2004.
The production of crude steel increased by 1.3 % compared with
2002 from 2.470 mill. tons to 2.503 mill. tons. The gross
profit on sales remained almost unchanged at 1,107 mill. € compared
to 1,106 mill. € in 2002. The result of the ordinary
business activities of the Saarstahl concern decreased from 42.6 mill. € in 2002 to
39.6 mill. € in 2003.
The workforce of the Saarstahl concern remained almost constant at
6,341 employees in the year 2003. 4,586 of these were employed as workers,
1,474 as salaried employees and 281 were trainees and apprentices.
Outlook for the Financial
Year 2004
Compared
with the average of the previous year, the development of Saarstahl AG in the
financial year 2004 was positive until May. There was a high degree of
utilization of production capacity.
In the BOF
steel plant, at 211,600 tons per
month, an increase of 3.9% was achieved compared to the previous year.
For finished rolling mill products, at 204,400 tons per month, there was an increase of 12% to 204.400 tons per month.
The
distribution of finished rolling mill products (incl. continuous cast booms for
sale) at 220.300 tons per month
significantly exceeded the average level of the previous year (186,800 tons per month).
Even
considering the general economic situation, the number of incoming orders can
be described as good. At 223,000 tons
per month, the average number of incoming orders until May exceeded the
average of the previous year by 22.9 %.
The
Chairman of the Board, Dr. Michael Hanisch, assumes that, as a result of the
number of orders carried out and the higher price of steel compared with the
last financial year, it was possible to compensate the great increase in the
cost of raw materials. This should mean that, with a high degree of utilization
of the production facilities, the result of the financial year 2004 will be
positive. The economic development in the European automotive and supplier
industry, which represents Saarstahl AG’s most important market, will have a
decisive effect on the further course of the financial year.
Völklingen, 30.06.2004
Saarstahl AG, Zentralbereich Öffentlichkeitsarbeit, 66330 Völklingen,
Telephone: + 49 68 98·10 21 12 | Fax: + 49 68 98·10 40 14 | E-Mail: saarstahl@saarstahl.com
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Press Release
Price increase wire rods
Saarstahl AG increases their prices from the 01.04.2004 for wire rods and bars depending on the product by an average of approx. € 50.00 per tonne.
This decision has been taken due to the extremely risen raw material, transport, energy and processing costs as well as strong demand from all markets.
The enormous high growth rates of the steel industry in Asia has let to a rapidly increased demand for raw materials and transport capacity causing dramatically increased costs for coal, coke, scrap and alloying metals.
The price increase is valid for deliveries in the second quarter of 2004. Saarstahl AG reserves the right to align prices further within this period if additional increases in raw materials will occur. Long-term contracts will also be effected by a comparable increase.
Völklingen, 23.02.2004
Saarstahl AG, Zentralbereich Öffentlichkeitsarbeit, 66330 Völklingen,
Telephone: + 49 68 98·10 21 12 | Fax: + 49 68 98·10 40 14 | E-Mail: saarstahl@saarstahl.com
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