Annual Report 2005/06 - voestalpine

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Management Report
Annual Report 2005/06
to a total of EUR 1 billion; the start-up of
operations of all key facilities – with the exception
of one hot-dip galvanizing plant –
is scheduled for the spring of 2007. The
most important individual projects are the
erection of a new cold-rolling mill and two
hot-dip galvanizing plants, as well as substantial
expansion of the capacity of the hot
wide-strip rolling mill.
During the 2005/06 business year, the
expansion of the Steel Service Center (SSC)
in Linz was completed (investment volume
over EUR 15 million); at the same time, work
on a new SSC in Poland was started.
Completion and production launch are
scheduled for the summer of 2006; the total
investment for this project will amount to
about EUR 18 million. The new location in
Poland will facilitate consistent utilization
of the growing market potential in the new
EU member states, with a focus on the white
goods and automotive industries.
In the 2005/06 business year, the investments
of the Division Steel amounted to a
total of EUR 294.6 million (no significant
holdings were acquired). Compared to the
previous year (EUR 324.8 million), this
means a decline by about 9%.
The largest single investment of the Division
Railway Systems in the past business year
was the new rail rolling mill at the Leoben-
Donawitz location in Austria. The total investment
amounted to EUR 66 million, and
operations and production started in late
January 2006. The facility is equipped with
technological features, such as ultraflexible
rolling (UFR) technology that enables both
an additional significant reduction of tolerances
and just-in-time production of rails.
With the current rail rolling plant, which is
the most modern worldwide, the voestalpine
Group is continuing to expand its position
as technology and market leader for the
highest quality special rails.
Overall, the investments of the Division
Railway Systems in the 2005/06 business
year (including acquisitions) amounted to
EUR 133.7 million, an increase of 13.1%
(EUR 118.2 million) compared to the previous
year.
There were no large-scale investments made
in the Division Automotive, but significant
modernization and expansion investments
were made at a number of locations taking
into account the increased strategic focus
on the profitable niche segments that
require sophisticated technology. Compared
to the previous year, the division’s investments
rose from EUR 50.3 million to
EUR 114.7 million, an increase by 128%
which is largely due to acquisitions.