Annual Report - voestalpine

Management Report
40 Annual Report 2007/08
Investments 1
A further increase in investment activity
In the financial year 2007/08 total investments
of the voestalpine Group amounted
to EUR 3,910.1 million, thereof EUR 1,871.3
million in tangible fixed assets, EUR 2,006.4
million in intangible assets, and EUR 32.4
million in equity holdings.
The significant increase compared to the
previous year is primarily due to the acquisition
of BöHLER-UDDEHOLM AG, but
also results to a substantial degree from accelerated
investment programs in all of the
other divisions.
The Steel Division increased its investments
to EUR 479.9 million or by 2.2% as compared
to the previous year (EUR 469.4 million). The
investments were focused on the completion
of the “Linz 2010 – 2 nd Stage” investment
program and on the implementation of the
follow-up project “L6 – Part 1”. Major investments
under the “Linz 2010” program in
financial year 2007/08 included commissioning
of the walking beam furnace (hot
wide strip mill), push-pickling line, coldrolling
mill 3 and hot-dip galvanizing plant
4. The 2 nd expansion stage of the “Linz 2010”
investment program, which began in 2002 and
involves more than EUR 2 billion in investments,
has now been successfully concluded,
except for hot-dip galvanizing plant 5 (which
is being realized in close synergy with project
“L6 – Part 1”and whose construction of the
plant started in the 4 th quarter of 2007).
Project “L6” is aimed at increasing annual
crude steel production at the Linz location
from its current level of approximately 5.4
million tons to a minimum of 6.0 million tons
by 2011/12. The 1 st expansion stage, which
extends over three years, requires approxi-
mately EUR 1 billion in investments. In
addition to increasing capacity for highquality
flat steel products (particularly highstrength
and ultra high-strength steel
grades), the investments are also intended
to further improve energy efficiency and
environmental compatibility. The main projects
in the 1 st phase of “L6” include an expansion
of the hot wide strip mill, an increasing
melting pot capacity of the steel
mill, a new continuous casting facility 7, the
expansion of the company’s own power
plant (thereby ensuring a considerable degree
of long-term self-sufficiency in power
generation at the Linz location), and a new
DeNOx system to reduce nitrogen oxide
emissions from the sintering band.
Extensive investments were also made in
the heavy plate segment, where a number
of new and expanded production facilities
successfully began operations during the
2007/08 financial year.
Following the successful opening during the
past financial year of a new Steel Service
Center in Poland, a further SSC is currently
under construction in Romania. Production
is expected to begin in the first half-year
2009.
Furthermore, in the area of pre­processing
activities, a shape cutting center is currently
being set up. The new production location
will also start operation in 2009.
Investments of the Special Steel Division
from July 1, 2007 to March 31, 2008 came
to EUR 219.4 million and were focused primarily
on removing production capacity
constraints and upgrading facilities. A significant
amount was also spent on ongoing