Annual Report 2005/06 - voestalpine

In May 2005, the Division Railway Systems
acquired 51% of CONTEC GmbH, a manufacturer
of point mechanisms, and 80% of
SST Signal & System Technik GmbH which
specializes in monitoring systems for railway
traffic. In addition to these two acquisitions
in Germany, during the first half of the
2005/06 business year, the Group’s switches
sector undertook yet another step in the
expansion on the Indian railway market:
In August 2005, VAE GmbH acquired a
majority interest of 51% in the Indian
switches manufacturer Rahee Track Technologies
Pvt. Ltd. which has 150 employees
at two locations. This joint venture will enable
the voestalpine Group to improve its
access to the market in the southeastern part
of the subcontinent by having production
facilities that improve our ability to handle
demand; previously, the Group had only two
locations in the northern part of the country.
Early in the business year, the Division
Automotive concluded the acquisition of the
German company HTI GmbH, a manufacturer
of precision parts. The company
specializes in rotation shaping and surface
technology and manufactures a wide range
of transformed tube components that are
used predominantly in the automotive
sector, in particular for comfort and safety
components.
With the acquisition of the Vollmer Group,
which is also located in Germany, the
division took another important strategic
step toward a partnership in both develop-
ment and production with the automotive
industry.
The voestalpine Vollmer Group specializes
in complex stamping parts and components
made of steel, but also of other materials
such as aluminum, which are used in car
bodies and for underhood components,
primarily as safety elements.
At the beginning of the 2006/07 business
year, the Division Profilform acquired a
majority stake in the Russian company ZAO
ARKADA Profil which specializes in the
manufacture of light steel sections.
invesTmenTs
With EUR 566.3 million, the investments of
the voestalpine Group in the 2005/06 business
year were slightly above the already
high level of the previous year (EUR 564.9
million). Of the total investments, EUR 493.4
million were accounted for by tangible fixed
assets and EUR 72.9 million by intangible
assets and equity holdings.
The focal point of the investments of the
Division Steel in the 2005/06 business year
was the continued implementation of the
“Linz 2010 – Phase Two” program. The
project incorporates investments in capacity
expansion as well as in quality and production
optimization. The awarding of the
contracts for the most important projects of
the second phase of the project took place
in June 2005. The investment now amounts
Management Report
Annual Report 2005/06
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