Press Release

Investments of 18.7 million euros in Saarstahl's Völklingen location

In a meeting which took place on 09.12.2005, the Supervisory Board of Saarstahl AG took the decision to make investments amounting to 18.7 million euros in Saarstahl's location in Völklingen.

In the Nauweiler mill of the Völklingen rolling mills, fundamental modernisation measures are to take place in the production area for final processing known as the finishing line. This investment amounts to 13.7 million euros. With the new equipment planned, the majority of the products rolled in the Nauweiler plant (e.g. semi-finished goods and bar) are to be checked, adjusted and bundled ready for shipping. The new production line is to be installed with a direct connection to the rollover cooling bed of the rolling mill. At the same time, automation measures will lead to increased output in the production area. Furthermore, these adaptations will fulfil more stringent environmental and work safety requirements.

In the LD steelmaking plant of the Völklingen plant, it is planned to renew the operating and process control in the production area of the melting operation. The total investment amounts to 5 million euros. At the same time, by renewing the hardware and software, Saarstahl aims to achieve improvements in process reliability. In addition, the investment contributes to further qualitative developments in the steelmaking plant.

Including the investments which have already been approved in the Supervisory Board meetings, in 2005, a total investment of 86 million euros has been approved for the locations in Burbach, Neunkirchen and Völklingen.

Furthermore, in accordance with the 50% participation of Saarstahl AG in the company Roheisengesellschaft Saar, the Supervisory Board of Saarstahl has approved investments of over 200 million euros for modernising the coking plant (Zentralkokerei Saar) in Dillingen.

"With these future-oriented investments, we will continue to optimise our production locations and processes. They allow us to cater for our customers needs even more intensively and to support efforts in a current programme aimed at improving our operating result. After all, highly productive and flexible facilities as well as research and development for customised qualities to meet the highest demands make a significant contribution towards securing jobs at Saarstahl AG“ said Dr. Klaus Harste, Member of the Board of Management at Saarstahl AG.

Völklingen, 09.12.2005

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

Investments of over EUR 36.4 million to secure the future of Saarstahl locations

On 28.09.2005, the Supervisory Board of Saarstahl AG took the decision to invest a total of EUR 36.45 million in the Saarstahl locations in Völklingen and Neunkirchen. In May 2005, a decision had already been taken to carry out investment projects amounting to EUR 30.5 million at the locations in Burbach and Neunkirchen.

In Völklingen, EUR 16.2 million will be spent on setting up a new gas holder in order to make use of the converter gas which is formed in the basic oxygen steelmaking plant. The new gas holder will replace the ones erected in 1930/1931. In addition, EUR 2 million is to be spent on the construction of a new 25-ton boiler facility for environmentally-friendly generation of steam for heat and power.

A new induction quench and temper line is planned for the rolling mill in Völklingen. The quenched and tempered hot rolled steels, used particularly for meeting the high demands of the automotive branch, are registering high growth rates and are subject to continually increasing quality requirements. A microprobe is to be purchased for the technical laboratories in the central department for research, quality and testing in order to allow reproducible analysis of material properties. The total investment for both areas amounts to EUR 9.35 million.

At the Neunkirchen location, the central preparation of semi-finished products is to be renewed at a cost of EUR 8.9 million. At the same time, the manufacturing area will be adapted to fulfil more stringent requirements with regard to environmental and work safety as well as targeting greater output.

Dr. Klaus Harste, Member of the Board of Saarstahl AG commented: “With these investments, we will continue to strengthen our recognised high level of technological competence and to optimise process flows. Furthermore, we will continue to extend the development and production of grades which meet the highest demands. This applies, in particular, to the higher grade steels required by the automotive branch”.

Claude Kintz, Chairman of the Board substantiated: “With investments amounting to over EUR 36.4 million, we are consistently following our objective to continue to grow in the market segments which are significant for Saarstahl. Our investments and development partnerships provide support for the technical innovations of Saarstahl’s customers and strengthen the company’s future on the steel market in the long term”.

Völklingen, 30.09.2005

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

Saarstahl receives Bosch Supplier Award

On 06.07.2005, Saarstahl AG was presented with the Bosch Supplier Award 2005, the supplier award of Robert Bosch GmbH which is presented to selected suppliers worldwide. With this award, Robert Bosch GmbH show their appreciation of their suppliers’ special achievements with regard to quality, costs and reliability in the years 2003 and 2004. Bosch has therefore now bestowed the supplier award on Saarstahl AG for a second time. Furthermore, Saarstahl AG continues to be the only steel manufacturer whose product range includes bar steel and wire rod (long products) to be presented with the Bosch Supplier Award, together with their further processing departments. Claude Kintz, Chairman of the Board at Saarstahl AG says, “The bestowment of the Bosch Supplier Award 2005 represents further international recognition of Saarstahl products in the process chain of the automotive supply industry“.

Bosch Supplier Award 2005		Übergabe Bosch Supplier Award 2005 BOSCH Dr. Manfred Möllendorf, C/QM (Direktor Zentrale Qualitätsmanagement) Dr. Gerhard Turner, CP/P (Vorsitzender der Geschäftsleitung Zentralbereich Einkauf) Saarstahl AG Dr. Klaus Harste (Vorstand Technik) Claude Kintz (Vorstandsvorsitzender)

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Press Release

Annual General Meeting on 29.06.2005:
The exceptional situation on the steel market in the financial year 2004
has a positive effect on developments in operating profit at Saarstahl AG

Financial Year 2004

“The exceptional situation on the world steel market in 2004 lead to very positive effects on the financial development of Saarstahl AG. On the one hand, the financial year was characterised by a good situation regarding orders and high production levels but, on the other hand, also by significant increases in costs”, said Claude Kintz, Chairman of the Board of Saarstahl AG, at the annual general meeting on 29.06.2005.

Saarstahl AG was able to further consolidate and even increase its market share in the company’s most important segments and products with the highest quality requirements. The company is one of the global market leaders in the fields of free-cutting steels and tyre cord as well as, in Europe, for cold heading grades, pre-stressed steel and bar steel for the automotive industry.

Compared with 2,503 mill. t in 2003, crude steel production rose by 8.5 % to 2.716 mill. t. Shipping of crude steel products increased from 2.301 mill. t by over 13 % to 2.608 mill. t.

Net sales increased by €415 mill. (41.6 %) from €998 mill. in 2003 to €1,413 mill. in 2004. This development is partly due to higher average revenues per tonne and partly due to higher delivery quantities in the year 2004 compared to 2003.

In 2004, there was a parallel increase in material purchased of €230 mill. (34.1 %) to € 903 mill.

The profit and loss from ordinary operations amounted to €94 mill. in 2004.

The workforce remained constant compared with 2003. In 2004, an average of 5,219 employees were employed. 254 of these were employed as apprentices and trainees thus making Saarstahl AG one of the most important training centres in the Saarland.

Mr Kintz continued, “In particular, the high level of commitment and competence of our employees as well as continuous modernisation of our equipment allowed us to make full use of the exceptional development in revenues and quantities on our markets in the year 2004”.

Outlook for the Financial Year 2005

The development in the financial year 2005 continues to be characterised by positive results but there has been a significant decrease in orders.

Chairman of the Board, Claude Kintz, assumes that, taking the overall economic situation into account, production and shipping quantities will continue to normalise in the coming months. Furthermore, there will be a further rise in the cost of crude steel due to significant price increases for ores, coal, coke and alloys. The economic development in the European automotive and automotive supplier industry, which represents Saarstahl AG’s main sales market, will also play a decisive role in determining the further course of the financial year.

According to Claude Kintz, “Cyclical fluctuations and the resulting effect on operating profit are always to be expected in the steel industry. For this reason, Saarstahl AG will have to make further progress in productivity and quality thus continuing the programme for improving operating profit which was started in 2004 with increased effort”.

Völklingen, 29.06.2005

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

Saarstahl Receives Environmental Protection Certificate

Saarstahl AG has introduced an environmental management system in all areas of production and a certification audit was carried out successfully in March 2005 by TÜV CERT, the certification body of TÜV Saarland – the regional technical certification authority.

This makes Saarstahl AG the first of the steelworks in the Saar area to receive this certificate for all areas of production. Now Saarstahl AG is one of the leading steel companies in Germany to be certified according to the environmental protection standard.

With the implementation of an environmental management system for all areas of operation in accordance with DIN EN ISO 14001, the company fulfils the strict, internationally recognised requirements of this standard. An essential element is the obligation to improve processes for continually reducing the effects on the environment.

In order to achieve this sustainable improvement in environmental protection, Saarstahl approved investments and large scale repairs totalling € 5.5 million in 2004, purely for environmental measures.

Major environmental investments at Saarstahl have been, for example, in noise protection, by installing sound absorbers in the basic oxygen steelmaking plant, in air purification, by constructing an extraction facility for emissions of fumes and the construction of a flame cutting hall for cutting up scrap which includes a dust-removal facility and, in ground and water protection, by constructing one washing hall each for vehicles and plant locomotives with a used water collection system.

In addition, in the forge, a prototype of a special extraction hood which is unique worldwide has recently been conceived for extracting the emissions which occur during flaming of the forged parts. The extraction hood will result in a significant improvement in the emission situation at the company location in Völklingen. The cost of this environmental measure is around 1.5 million euros.

Besides these purely environment-oriented investments, at Saarstahl, approximately 10 % of all investments are targeted at fulfilling their own high environmental standards.

“Besides work safety and quality assurance, environmental protection is one of the main focuses of the management systems at Saarstahl AG. The successful environmental certification is an important contribution to securing our company’s future in the long term” says Dr. Klaus Harste, Member of the Management Board. “It reinforces the company’s competitive position internationally and confirms that Saarstahl AG satisfies the increasing demands of environmental legislation and ecological requirements.”

With this successful certification, the company has shown that it is aware of the challenges and problems presented by its influence on the environment. Through the implementation of the environmental management system, an effective instrument has been created for continually reducing the effects on the environment. Additional individual solutions will be developed for fulfilling legal requirements and for satisfying the needs of local residents. A decisive factor in realising this environmental management system thereby also includes the sensitisation and motivation of the employees with regard to active environmental protection.

Völklingen, 25.05.2005

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

Investments of over 30 million euros for modernisation of the rolling mills in Burbach and Neunkirchen

In a meeting on 19.05.2005, the Supervisory Board of Saarstahl AG approved investments of 27.8 million euros in the rolling mill at the Burbach location and 2.7 million euros in the wire rod mill in Neunkirchen.

The wire rolled in the Burbach plant and, in particular, tyre cord, belongs to one of Saarstahl’s main market segments. Around 40 % of the total production at the steelmaking plant in Völklingen is rolled at the Burbach location. So that no limits are set in accompanying the product developments in high grades at Saarstahl’s customers, the operational equipment on the production line is to be oriented towards future requirements. New blooms are to be integrated into the 4-strand rolling mill and the drive systems and control technology are to be renewed.

In the finishing area of the Neunkirchen plant, the trimming station is to be moved to a different place and a new coil turnover car constructed. In addition, material flow tracing is to be modernised with a semi-automatic labelling system for samples and wire rod and further improvements are to be made in the working conditions for employees.

These investments represent an additional contribution to improving the quality of Saarstahl products. This is particularly true for the high grades of steel required for the strict demands of the automotive industry. Here, Saarstahl not only delivers grades of tyre cord which are acknowledged and in demand worldwide but there is also an increasing trend towards preliminary products for engines and gears.

Dr. Klaus Harste, Member of the Board of Management at Saarstahl AG, says “With these investments amounting to of over 30 million euros, our high level of technological competence will be reinforced further and the processes in the plants optimized. Furthermore, we are following a consistent strategy of continually strengthening the development and production of the highest qualities in order to secure the company’s long-term future on the steel market”.

Völklingen, 24.05.2005

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

Claude Kintz appointed as new Chairman of the Board

In a meeting which took place on 23.03.2005, the Supervisory Board of Saarstahl AG appointed Claude Kintz (62) as Chairman of the Board of Saarstahl AG.

Since 1988, Mr. Kintz has been a member of the Saarstahl Group as General Manager of the French subsidiaries Secosar S.A.S. and Esem-Etirage S.A.S., Paris.

Furthermore, Mr Kintz has been responsible for the Sales and Marketing division of Saarstahl AG Völklingen since 01.08.1994. As a board member, he has been responsible for the Sales division since 14.03.1996 and, since 15.12.2004, for the Sales and Finance divisions.

Völklingen, 23.03.2005

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

Change in the management board

Due to different perceptions regarding the future business orientation of Saarstahl AG, Dr. Michael Hanisch will resign from the management board by mutual agreement on 28.02.2005.


Völklingen, 15.02.2005

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

Donation for the victims or the flood disaster in South Asia